Tips on How To Increase Your Credit Score Fast in 2020?
You really do need to know how to increase your credit score fast. I will explain why:
You know how they say money makes the world go round? It isn’t so much about hard cash anymore. In fact, at present, credit scores are the real drive behind most of the events that can change your life. Therefore, if you want to now how to increase your credit score fast, it is advisable to have control over your credit and raise your credit score as high as possible.
Unsure How to Increase Your Credit Score?
For someone with a bad credit score, several negative consequences can occur. What is does this entail? Well, first of all, not only credit card companies check an individual’s score to determine if they really should receive new credit, but several other companies or businesses also analyse the credit score as a way to determine if they really want or don’t want to have that person as a client.
If, any of the following situations may occur:
- Problems with job offers
- Denial of a lease or rent
- Denial of a home mortgage loan
- Denial of a home equity loan
- Denial of a car loan
- Denial of low interest rates
- Denial of different types of insurance such as a car for example.
Strategies To Increase Your Credit Score
So what can a person do exactly when you are looking at how to increase your credit score fast? To then be in the category of people with a good credit rating…
Although there are several steps that can be taken, none of them are sufficient on their own. Additionally, there is no guarantee when it comes to improving your score at high limits. However, a very effective way is by following these strategies to the letter.
It is important to pay off your loans and credit card debts, and it is equally important to continue to use your credit responsibly. These efforts will all go towards you finding ways on how to increase your credit score. If you suddenly stop using your credit, you will lose the advantage you have to increase your score. The question is to maintain a good balance between the level of credit you have open and the amount of debt you have acquired.
In addition, you must also add other mitigating factors such as: the payment history, the length of time of each account in your credit, debt balances that you have and that are carried month to month, and more. Follow as many of the following possible tips on how to increase your credit score:
- Pay more than the minimum payment. This will lower your level of debt faster to improve your credit level. In addition, it will reduce financial charges, helping you lower your total debt much more quickly.
- Continue using your credit cards, but limit your expenses to the most essential. This strategy will lower your debt level, while you become more responsible for using your credit, that will eventually help you improve your score.
- Refrain from opening new accounts or closing others. This would affect your credit score, typically in a negative way.
- Stop using the credit cards that are charging you higher interest rates, unless you can pay your monthly balance in full. Remember to make additional payments to the balance sheet if you are not paying the balance in full.
- Pay each of your debts on time, such as utility expenses, school fees and loans. If possible, pay bills earlier to avoid the possibility of forgetting and late payment. Even better, make your payments automatically debited so that you never again have to do it manually.
- Monitor your credit score and dispute any false information. Remember that negative information will remain on your credit for seven to ten years depending on what it is.
- Avoid department store credit cards and use a primary credit card for most of your purchases. Large players in credit (MasterCard, Visa, American Express, and Discover) carry more weight.
- Avoid having a debt collection agency on your list of creditors. If you know you owe an account, make the payment before it is delayed or you reach a payment agreement with them.
Follow these tips and you will be able to build up your credit score faster. These will help you in the long run as you grow your credit. A good credit score is beneficial.
Bad Credit Card Debts – Can You Solve Them?
Credit cards are such life savers, but they can also cause us problems, if you end up with bad credit card debts. They should be used to cover emergencies, or buy products when we do not have the amount to cover in a single payment. Do you need some quick cash? Just head over to the nearest ATM. However, shiny card cards can become huge problems of those who do not plan their finances and those addicted to shopping. There is a need for many to reduce bad credit card debts. A huge number of people are in bad credit card debts and financial problems because of it.
A card is a financial instrument that works as a means of payment, and as a mechanism to obtain credit from banks. The issuers of the card grant the user, through a contract, a revolving line of credit. This means that you can re-use the credit as you pay. So, how do you not abuse this privilege without getting into difficulty with bad credit card debts and therefore not need to reduce it in the first place?
Contemplate Your The Potential Costs
Before getting a credit card, it is very important that you keep in mind all the expenses that come with it. Credit card costs can quickly add up and lead to bad credit card debts if you aren’t careful.
- Annuity: These are charged annually for the privileges you enjoy by using credit card.
- Interest rates: These vary from one institution to the other. The average rate is around 35% per annum.
- Charges and commissions: The charges add up when you do not pay your debt on time. The commissions are additional charges that are charged when you use the ATM or reward programs, among others.
Schedule Your Credit Card Payment Dates
The most basic rule in having a credit card is to spend no more than you earn and to keep to your payment dates. When you make expenses that your income can not cover, your finances are out of line and you end the month with negative numbers – again, you can end up with bad credit card debts this way. You should be very careful with the dates of payments, and avoid using your card when they are close, or exceeding your budget.
With Higher Financial Power Comes A Higher Responsibility
Avoiding unnecessary and impulsive purchases is very important to avoid unnecessary debt. A small debt can grow and get out of control if you make purchases each month that cannot be paid and you are not paying attention to your payment dates.
There Are Simpler Ways To Get Credit
It is not always necessary to process a credit card or resort to a standard loan from the bank to obtain a loan. There are many online platforms that would easily lend you money for your important projects, provided you prove to them that you have the capacity to pay up.
Of course, your data and banking information would probably be requested too. When you are approved, you can just head over to an ATM near you to get the money, easy – take it from me.
How many credit cards should I have?
How many credit cards should I have, can be a question we ask ourselves. So, how many do you have, and how many do you use? Do you know that you really don’t need so many cards for your daily transactions? Having two cards, one of debit and one of credit, is the most advisable to give them a good use, control them and avoid problems such as indebtedness.
At most, keep your cards to three. With them it will be enough to make the purchases that we need and it is an affordable amount of “plastics”, which allows us to keep control of the cards and keep our finances at bay, without fear of getting into debt.
When talking about credit cards and questioning ‘how many credit cards should I have’, the reality is that one is more than enough. In fact, it is recommended to leave your credit card at home and use a debit card at the ATM and for day-to-day purchases. Why? Debit cards have a good part of the advantages of credit cards in terms of insurance for their daily use and an extra benefit: they do not lend money, so we cannot spend what we do not have.
Less Cards, Less Debt
Having more than one card is an expense for the user, since few actually have a zero cost. But the real problem with credit cards is not what we pay for maintenance or issuance, but having more only increases the possibility of spending more and, what is worse, using them poorly.
We run the risk of taking credit cards as an extension of our income, and it is not. Credit cards are very useful and can be a great tool if they are used correctly and it is clear how they work.
A credit card allows you to buy on time: buy today and pay tomorrow or in installments with a monthly minimum. In return, the bank charges us a series of interests, if we delay payment or establish fixed monthly payments. This is good, but can also be really dangerous. The more cards we have, the more difficult it will be to keep track of the purchases made and the money spent.
Ultimately, if you are wondering how many credit cards should I have, you only actually need one or two at the most.
How To Use Cards Well
Make sure the card is not in revolving mode: By default, most cards are activated under this form of monthly fixed payments, which is the most comfortable to spend more, but the one that makes the most interest. Before using the card for the first time, consider going for the non-revolving mode.
Use the credit card for large purchases: The biggest benefit of these cards is the insurance they include. If we want to hire a trip, it’s better to do it with the card because it includes your own travel insurance. The same applies to large purchases, as it adds guarantees to the products we purchase.
Seek low costs: Look for cards that have no issue or maintenance cost. The discounts in stores and other advantages? They are fine, but they are still formulas to make us use the card more than we want and need, precisely to take advantage of these offers.
With this in mind, you’ll prevent the abuse of your credit card.
How to obtain a credit card
When making payments around the world, the credit card is a popular mode of payment, since it provides us with many facilities such as being able to virtually make payments in any business without needing to carry cash.
However, not all people can own such cards, for this we will have to meet criteria that can sometimes depend on the bank or the type of credit card that we want. In this article, we will explain what those requirements are, and what to keep in mind when we are thinking on how to obtain a credit card.
It is important first of all to keep in mind that the specific requirements can vary according to the type of credit card and the bank, when looking at how to obtain a credit card. For example, if we want to have a credit card that allows us to have a monthly credit of £/$10,000, we will undoubtedly have to prove that we receive a much higher income than that, to request a typical card. You also need to be aware of what credit card apr you will have to pay if you are granted a card, depending on your circumstances. Anyway, here we will now be listing some of the general requirements which may help, if you are wondering how to obtain a credit card.
Credit Card Requirements
- Legal Age: Before you can obtain a credit card, you are expected to be 21 years or older. You can also obtain this if you are 18 years of age, but you will need your parent’s permission for this and an income source. Being of legal age and having an identity document are basic requirements, as for most other procedures related to banks and obtaining credits.
- Good Credit History: Normally, to obtain a credit card they will ask us to show that we have a good record of payments. That is to say that we have never been part of a record of defaulters and that over time we have always been up to date with our debts.
- Verifiable Source Of Income: We will also have to give proof that we receive regular and sufficient income to be able to face the credits that we can generate with our card.
- Physical Address: To obtain a credit card, you must have a physical address where you can be reached out to and contacted whenever necessary. Having a physical address also shows that you are grounded, and less carefree.
- Proper Documentation: Finally, to obtain the credit card we will have to fill out the application document that will be delivered to us in the branch of the bank where we go. Depending on the cases, we can also download the form online and send it by mail.
These are some of the most important requirements when requesting for a credit card. Have these in mind whenever you are trying to get yourself a new one.
Pros and Cons of Credit Cards
The use of the credit card has been extended to the point where we practically make all our payments with the so-called “plastic money” – but what are the pros and cons of credit cards and their use?
Financiers and banks have facilitated access to credit through their credit cards and we all find it more convenient to use them before carrying money in your pocket. You can even get a credit card sign up bonus sometimes. But, we will examine the many pros and cons of credit cards in this post.
The first thing we have to understand is that a debit card and a credit card are not the same thing. A debit card charges you instantly from the money you have deposited in your checking account, while a credit card offers you a form of loan to operate. For many, it is useful to see a credit card as “fictitious money” that you do not really have, and have to return within a certain period. So, what are the pros and cons of credit cards?
Pros of Credit Card
The introduction of credit card has brought about a huge number of advantages, especially in an increasingly electronic world. Some of these are listed below:
- A credit card reduces the need to carry cash around.
- It gives you access to money.
- It is the most used payment method for electronic purchases.
- Some (but not many) credit card services usually have a loyalty plan with redeemable points, discounts, repayment of a percentage of the purchases, etc.
- If we are good payers it allows us to consolidate our credit profile, which will suit us when applying for loans and mortgages.
- You can access money all over the world.
- You can have cash in a moment of urgency, making a transfer to your own account or withdrawing it through the ATM.
It is clear that there are certain rather tempting advantages when it comes to having your own credit card, in addition to your debit card, regardless of the fact that some firms only accept this method of payment. Now, a responsible use and deep understanding of what it entails will allow us to make a good choice and not put a significant dent in the family budget.
Cons of Credit Card
These are some of the main disadvantages that can affect us if we access a credit card (therefore sticking to your debit card is often the better option):
- The use of the credit card usually involves the payment of a series of costs of issuance, maintenance, renewal, extraction through ATM, etc. Look carefully at what commissions the card attracts and make comparisons with other institutions. Make your choice based on your comparison and judgement.
- Deferred or split payment means the repayment of money will be arranged with an interest rate, which in the end ends up making the purchase more expensive, sometimes alarmingly.
- There is a risk that your card will be physically stolen or that your data will be stolen over the internet, which could lead to fraudulent operations with your credit card. Some companies offer card insurance that exempts you from liability and reimburses you for the money that may be stolen.
- Credit card encourages compulsive and thoughtless buying. It is very important to plan very well the use of the credit card to avoid excessive and unnecessary expenses.
These are the major pros and cons of credit cards. With these in mind when you are using your credit card at the ATM or electronically, you will hopefully be guided from incurring unnecessary expenses.
Please be aware that the content here are thoughts and opinions and not advice.
Should you wish to ditch the credit cards and loans, why not take a look at creative ways to make money online.