What A Decent Credit Score Is?

Maybe when you’re young, your parents would keep on reminding you to spend your money wisely. You probably had a piggy bank to help you use your money even better. All of these steps have brought you here, to being an adult, and adults need to be wise in managing their own finances.

As the saying goes, money moves the world. I think it’s fair to say that you can’t buy your dream car or home with your bank account empty. That’s why people have invented credit cards and loans, to help you, but there are things you must comply to in order to be eligible for loans.

A good credit score, without going in the details and filling your head with complex information, a good credit score reflects on whether you’re a diligent payer or not. It’s based on five simple factors:

  • Payment History
  • The Amount of Money You Owe
  • Credit History
  • Your New Credit Applications
  • Newly-Opened Accounts

These are the 5 horsemen that can deny your loan and you HAVE to be extremely careful with them.

It’s probably pretty clear so far why a good credit score is crucial. Because without it, you can’t be approved for credit cards or/and loans. The better the score, the better the plans your creditors can offer.

So, without further ado, let’s get in the top 3 ways you can manage and improve your credit score”

1. Get a Copy of Your Credit Report

Of course, before getting to fixing your credit score you have to precisely know it and know what’s wrong with it. You can do it by calling your company or through a legitimate online credit report website. Just be careful if you’re going online and read the fine prints.

2. Make a List of Your Debts

Be as organized as possible when it comes down to debts, so you can pay them on time, always. Just make sure to pay the minimum amount and your credit score will get better each day. You can even get rid of different accounts or merge them, while making sure that you keep the account that has the best interest rate.

3. SPEND LESS THAN YOU EARN

Extremely important, don’t ever spend more than you earn, because your debt will be something that you will never be able to pay in full. Don’t forget to also allocate a couple of dollars to your savings account as well!

By following these simple, but crucial steps, you can assure yourself a good credit score!