5 Tips To Build Your Credit Score
Market Meditations | March 2, 2021
Your credit score is an essential part of your financial health. It dictates: interest rates you pay on loans, access to credit cards, availability of rental accommodation and more. However, it is not always obvious what you can do to improve it ?
With these 5 tips you will be able to improve your score and moreover, your access to financial products: ✅
- Pay any debts in full and on time ? Your score is heavily influenced by your history of debt repayment. Set up a direct debit to pay your bill in full at the end of every month.
- Build your credit history. If you don’t already have one, get a credit card, spend a small amount of money on it each month and show you are capable of repaying debt.
- Monitor your credit utilization rate. This is the percentage of credit you are using in relation to the total amount of credit available to you. Always make sure your credit utilization is below 30%.
- Never open multiple credit accounts in a short time frame❌ This makes you look desperate and is a sign you will not be able to pay back your debts.
- Never withdraw cash using a credit card ? Many credit cards charge additional interest on cash withdrawals so always make sure to avoid this.
And back to the markets we go ?