Having perfect credit is a great goal, and a lot more attainable than people think. After all, having good credit isn’t about being wealthy, it’s about being financially responsible – though being financially responsible can certainly lead to wealth. The point is, you can do it! Just follow our helpful tips below, and you’ll be sure to see your credit score soaring in no time!
If you’ve ever paid a bill late before, you know nine times out of ten you’re going to get hit with a late fee – and those can add up fast. On top of that, you payment history accounts for 35% of your credit score, which means paying all your bills on time every month really can add up fast and make a huge difference.
Never Hit Your Limit
No matter how high your credit limit goes, you should do everything you can to ensure you never reach it, or “max out,” if you’re trying to keep your credit score high. In fact, if you really want to go above and beyond, try not to ever have more than 33% of your credit used at any given time, or if you can 10%. Remember, outstanding debts account for as much as 30% of your credit score, so the less you owe the better your score.
Always Spend Within Your Means
It may seem obvious to live within your means, but many people actually don’t, sometimes without even realizing it. That’s why, to protect yourself, you should never have more credit than you can actually afford, or spend more than you earn. Many people out there try, but it never works out. So the lesson is, be frugal. Set a realistic budget for yourself and stick to it, doing away with all other unnecessary purchases.
Don’t Sign Up For Every Credit Card You’re Offered
Yes, having credit cards can be good; but no, that doesn’t mean you need to jump at the chance to take advantage of every credit card you’re offered. Credit inquiries are hard checks, and too many in too a short time can do more to hurt your credit than help.
Have Credit History
How far back your credit history goes accounts for 15% of your total credit score, and the longer you’ve had your accounts open the better. After all, the longer an account is open, the more creditors can learn about your financial habits and patterns, and actually see how responsible you really are over time. Having a very weak credit history with only newer credit card accounts, on the other hand, is a huge red flag.
Always remember though, bad credit or not, Suburban Auto Finance will always be here to help you get the reliable, affordable used vehicle you need to do what you need to do to get your credit score exactly where you want it to be!
If you are looking for the best in auto financing, no matter what your current credit situation is, choose Suburban Auto Finance and learn how we can help you get back behind the wheel in no time. At Suburban Auto Finance, we understand everyone deserves the independence of having a reliable vehicle, and our mission is to work as hard as we can to make that happens for you.