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Got Credit? Good or Bad? Either way, what are your credit goals for 2018?
Hey guys! I hope everyone had a wonderful holiday, but I'm glad it's over! I won't speak for everyone, but I'm definitely ready for 2018 and speaking of, this year I want a credit that's as high as...well:
Maybe not that high, but y'all understand what I'm saying. It's not the lowest score because I've had low, but I would like it to be higher than what it already is. Of course, there are definitely some steps to establishing awesome ass credit and a lot of people don't know what to do, including myself.
Step 1: Open Up A Bank Account
First and foremost, in order to establish any kind of credit, you need to open up a bank account; checking account and a savings. Credit card companies require a bank account in order to apply for a credit card. When you keep accounts open for a long period of time, it shows creditors that the person is able to handle the responsibility of an account, which then improves your chances of getting credit.
Step 2: Keep Payments On-Time
Yup, with every bill you have in your name, them folks wanna know can you keep with the payments. PAY. YOUR. BILLS. ON. TIME, especially utilities and any credit or payment expenses. Missed or late payments on these bills get reported negatively to credit agencies. Sometimes, these accounts may even be reported positively if payments are consistent. Shit, this is the main reason why I try my ABSOLUTE BEST to be on time with my payments. I missed one payment as of recently with my second credit card and my score dropped. It's nowhere near where it used to be, but it damn sure hurt my lil soul when I looked at my score. I guess that's the price you pay when you make a payment on the wrong credit card. Also, if you have student loans, making those payments on time help as well. Ask me how I know.
Step 3: Apply for that Shit!
Now, hopefully you won't get denied and in some cases you may, but that doesn't mean give up. I can remember a time when I didn't have a credit card because my credit was shitty as hell, which was almost two years ago and now I have two, each with a different limit. Open up a secured or prepaid credit card. These cards require an advance payment to secure the line of credit on the card. Payment on these cards report to credit agencies, helping to establish a credit history.
Step 4: Keep a low balance!
You betta say that shit Issa! No, but seriously, keeping a low balance makes for an increase in your credit score. Avoid hitting the credit limit on any cards. According to Credit Karma, keeping the balance low compared to the available credit limit has a positive impact on credit history. This is where my biggest problem is! I need to learn how to manage my money better, that way I won't have to always use my credit card, but of course you still gotta use the card and pay the bill off over time in order to establish credit. Any financial advisers reading this? If so, help ya girl out! I'm tryna be in the 700 club!
...and Blair You Have It. Leave your comments! Share this post! Refer me to a financial adviser!
