Tips To Help You Build Credit

Tips To Help You Build Credit

A credit score depicts the current state of your financial health and shows a lender your creditworthiness. Nowadays, having a solid credit score matters more than ever. A good credit score makes it easier to take out a student loan, travel insurance, or car loan. Best of all, it opens the door to low interest charges when you borrow. Building credit requires a great deal of effort and time, but not to worry: We’ve provided a few viable tips to help you build credit.

Get a credit card.

Getting a credit card is an intelligent way to build your credit history. Even if you’ve encountered some financial difficulties, a credit card can still help. Contrary to popular opinion, debit cards have zero impact in building credit history, considering that you’re spending your own money. Keep in mind that acquiring a credit card that comes with reasonable interest charges can be tricky, especially if you have no credit history.

Start by searching online to find the companies that offer the best cards within your country. For instance, if you live in Canada, consider Googling “best credit cards Canada” to find a reputable credit card company in Canada. Many Canadians prefer using a Tangerine World Mastercard because it has no annual fee and offers major savings. The most significant advantage is that this credit card features a money-back rewards program.

The Scotia Momentum Visa Infinite is a Visa signature card notable for its cashback rewards. Alternatively, consider the Aeroplan credit card offered by TD bank. Their rewards program allows you to earn Aeroplan points on your purchases and works in a similar way to Macy’s rewards cards. Feel free to check Macy’s website for more information on their recent offers.

Make payments on time.

Having a history of on-time payments can play an integral role in helping you build credit. Take the initiative and make your credit card bill payments on time. A good rule of thumb is to make full payments as soon as you receive them. Try to catch up on any late credit card bill payments as soon as you can. If possible, set up standing orders with your credit card issuer or bank to avoid forgetting about your outstanding payments. Remember, paying your bills in full shows fiscal responsibility, which invariably impacts your credit score.

Let’s say you use your credit card to finance your purchases: Watch your spending habits to avoid overusing your credit. For instance, if you want to buy the best dress pants for men, you can always find a good pair of dress pants for an affordable price. No doubt, an expensive pair of dress pants doesn’t necessarily indicate quality for men’s dress pants. Notwithstanding, finding the right pair of dress pants isn’t exactly rocket science. You can find the best dress pants at reputable brick-and-mortar or online retail stores. Best of all, dress pants work well with a solid pair of dress shoes. The bottom line is that maintaining good credit card habits can help you build credit.

Review your credit report.

Reviewing your credit report gives you actionable insight that informs the best strategy for building your credit. Specifically, your credit report provides an in-depth history of your credit usage and transactions. Don’t hesitate to contact the major credit bureaus like TransUnion, Equifax, and Experian for a credit report. You can find the contact information of these credit bureaus online at their respective websites.

You can obtain a free credit report every year from each of these three credit bureaus. You might want to request one report every quarter so you can monitor your credit reports periodically. Keep in mind that you may be required to pay a fee to obtain your actual credit score. However, some credit unions and banks don’t charge customers for credit score information. Check your bank’s website to see if you qualify to obtain credit score information for free.

 

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