In a world of plastic cards and automatic payments, it is easy to see how so many people are getting in over their heads financially and losing control of their credit score. But being financially healthy adds value not only to your own way of life, but to the health, growth, and overall potential of your business. If you are new to the Real Estate Investment game, you know that there is a lot to consider. And if you’re financials aren’t in a good place, you probably know by now that it is pretty difficult to do business. Here are some of our thoughts on why you should be more vigilant and how you can keep up with the increasing responsibility.
The Benefits of Good Credit
Having good credit is almost as good as gold these days. In a world where we swipe, transfer, and send almost every transaction that we make, it is vital that your credit score stays as high as possible. And though it may be a little tricky to understand how the credit system works, the bottom line is that good credit affords you a whole slew of benefits that bad credit won’t even let you near. One of the huge upsides to good credit is that you will qualify for more lines of credit and higher limits. And while an onslaught of credit card offers may seem annoying, it means that you have proved to be trustworthy of managing money. A high credit score proves credibility.
Good Financial Habits
So, you may be wondering how you get that good credit score. The answer is pretty simple. Know your score, avoid late payments, and report any suspicious activity. At least once a year, you should make sure to check your credit score. There are plenty of free sites, but if you are nervous about it, you can always ask your bank which one(s) they recommend. Make sure to review the reports thoroughly, and if you notice any discrepancies, report them immediately! And when it comes to making payments, always pay on time. This goes for credit card bills, utility bills, rent payments, all of it. Being late on your bills is bad for your credit and can make a huge impact on your score over time. Thanks to the internet and other handy tools, you can now set up automatic payments for almost everything. This is a great tool because it not only makes sure that you manage your payments on time, but it can also help you in other aspects of financial planning.
How to Increase Your Credit
If you have either short credit history or poor credit, here are some easy ways to grow your credit. Start by keeping your balance low. You don’t have to zero it out completely. But keeping it low, ideally below 30% of the credit amount available to you. If you want to increase your credit score quickly, keep your balance below 10%. The next thing you should is to be diligent about tackling your debt. Pay off the loan or card with the highest interest rate, and once that is paid off, pay down the next one. By paying down credit cards and loans, and paying your bill on time, you will start to see your credit score climb.
