In an age when paper money is becoming with every passing day less and less used, your proverbial on-paper financial existence should be as close to impeccable as possible. Of course, with plastic debit and credit now ruling the day, while being used for near every purchase and transaction imaginable – from school loans to homes and cars to trips to mars – it can be easy to get carried away. Understandably so. And debt loads on Canadian households continue to climb as the fiscal years fly by.
To help alleviate some of that weight from the shoulders of people dealing with debt, anyone looking to avoid debt altogether or simply for anyone who fears it could, at a wrong financial turn, we’ll be a reality someday, we are delving into some tips for how best to avoid any pitfalls of a bad credit score. As such, we will examine a number of different tools at your disposal to ensure who can have a great credit score now and in future.
In line with what we have already spoken of, one of the first things to consider is lowering your current debt. Always remember that your debt to credit ratio is quite simply a major factor in your credit score. Look around the house for ways to knock corners off your monthly spending allowance. Frugal doesn’t have to mean uncomfortable. The more money you can manage to save the more you will ultimately be able to put toward your debt. No doubt the quicker you can pay any debt – even so-called good or healthy debt – the better it will be for all parties.
One thing to always consider – something that may seem a little mundane in the context of credit scores but that is nonetheless essential to long-term financial success – is paying your bills on time. Now, this seems like something that needn’t be said, but there are unquestionably teens and tweens who have made poor decisions in high school or college, for instance, that have haunted them for longer than expected. When rebuilding, or maintaining your credit score, it is imperative that you first pay every one of your bills.
Remember that we have only listed above a number of the things that can and should be considered when looking to keep your credit score in good standing in this day and age. Keep in mind others, like raising your limits, say, can be hugely beneficial and should not be ignored when crafting a plan to keep your finances in order for the future.