Building Positive Lines of Credit
Whether we like it or not, money makes the world go round, and its wheels run on credit. Whether we like it or not, a credit score can determine many important aspects of our lives. So, we can either practice positive habits that allow us to develop a good line of credit, or bite the bullet and be at the mercy of lenders and lending agencies.
Credit is Important
There are some smart individuals out there who may think that having a line of credit is overrated. Why need a credit score when you can simply pay cash for all transactions? This particular line of thinking can quickly unravel when it comes to buying a house or affording a college education.
Building Positive Lines Of Credit
You can build a positive line of credit by following these simple, effective steps:
- Step 1 – Pay Your Bills
Start with one of the most basic things; it is as straightforward as paying your bills on time and boosting your credit score. Insurance companies and loan agencies look for customers with clean credit histories. Our advice: pay your bills as soon as you get them.
- Step 2 – Get A Cosigner
The best part of building a positive line of credit is that you don’t have to do it alone. If you are planning to get a loan or your first credit card, find someone with a positive credit score to cosign for you. Consider asking your parents, friends, relatives, and maybe even a close coworker for help.
- Step 3 – Choose The Right Credit Card
It is important that you choose a credit card that can act as a positive reinforcement to your financial score, rather than one that may pull your score down. This is where having a “secured” credit card can come in handy. A secured card is one in which the money you spend is tied to collateral. This requires more responsibility, and thus proves that you are responsible with your finances.
- Step 4 – Regular Employment
If you have a steady job, keep it. One of the top factors considered by lenders and insurance agencies is your salary history. This helps them determine whether you are creditworthy or not. They also prefer people who have had a steady job with a rising salary, which is like a character certificate for good behavior.
There are many actions you can take to improve your financial habits. It’s important to build positive lines of credit in order to aid the credit repair process. However, the best way to effectively repair your credit and turn your life around is to invest in credit repair professionals.
Trying to repair your credit on your own? Confused on how to begin the process? At Action Credit Repair, our experts will provide a personalized credit consultation, an audit of your credit history, and offer solutions to all of your credit obstacles. Contact us today to speak with an experienced professional: Call 518-945-2299 or email [email protected].