3 Easy Ways to Build a Strong Credit Score – Our GuideFebruary 04, 2021
Many people think they can hide their financial blunders from the public eye, but every monetary decision you make will impact your record in significant ways down the line. Your financial stability is a reflection of your sense of responsibility, so how you handle payments will determine your ability to loan options in your favor.
That means a bad credit score can prevent you from borrowing money, which can lock you out of life-changing opportunities such as purchasing a home, financing a business, and even paying for your children’s future education. Building an impressionable credit history can set you off on the right path, so if you want to secure your future, it’s worth improving your credit as early as possible.
You don’t need to be a penny-pincher to maintain a healthy financial habit; you only need to start simply by taking the tips below into account:
Tip #1: Pay Bills on Time
People who live from paycheck-to-paycheck may find it difficult to meet payment deadlines, so it’s important to start budgeting your money to ensure you don’t have any remaining bills piling up. Every missed payment will hurt your credit history, though you don’t have to dig your grave deeper if you fail to pay everything on time.
Showing your accountability by beating the clock on the next paycheck should offset the stain on your reputation, allowing you to shake it off your credit score and improve it in the long run. Of course, it’s always better for your peace of mind to prioritize your finances to avoid missing your bills in the first place.
Tip #2: Borrow What You Can Afford
It’s tempting to give in to your desires when you have a credit card on-hand, but remember that it isn’t a tool that allows you to buy luxury items you can’t afford. If you know that you won’t meet the next payment if you buy a certain item, then it’s best to save up for it instead to avoid falling into debt.
Tip #3: Don’t Open Up More Credits Than You Need
Opening up a new credit to pay off your existing debt is a recipe for financial disaster. Not to mention, it will compromise your credit history and leave you stuck in a cycle of debt. Keep in mind the more credit cards you have, the steeper your payments will be, so only open an account that you can maintain for the meantime.
The Bottom Line: The Importance of Improving Your Credit Record When Taking on a Loan
Having a good credit score can make your life easy in numerous ways, particularly in increasing your likelihood of getting the best deals on loans and mortgages.
Why Choose Us?
Applying is a loan that can be a time-consuming and complicated process. We can still help take the drudgery away from achieving your financial needs with our smart online application systems at Hoopla Loans.
If you’re looking for fast, easy loans in South Africa, we’re an ever-evolving online loan broker that can bridge the gap and help you build an impressive credit history. From affordable loans, bad credit loans to emergency loans, we can provide the coverage you need to obtain your goals.