Every financial consultant in Philadelphia, Pennsylvania encourages borrowers to cultivate good credit history. Having a good credit score allows you to buy a home without any difficulties. If you need extra financing for university, your credit score can play a part in the faster approval of your education loan. To top it off, it is even helpful in getting your dream job.
Remember that every financial decision you make gets recorded in your credit history. You won’t have to worry if you pay on time. If you always default on credit repayment, every instance will be a black mark in your credit history. Thus, be responsible when using credit so you can build and maintain a good credit score.
- Only Borrow What You Can Afford
So you finally got your first credit card! You might be thinking that you now have the license to buy whatever it is that you have taken a fancy to. However, this mindset is what will bury you in debt. If you swipe the card for a bag that costs more than what you are earning in a year, repayment will be difficult. You might even default on the payments. If you are unable to repay what you borrowed, it will affect your credit score negatively. Thus, when you are a credit cardholder, it is a must that you remember to only buy what you can afford to repay. - Don’t Max Out Your Credit Card
If it is not an emergency, then avoid maxing out your card or even coming close to the credit card limit. Most likely, you won’t be able to pay it all off without defaulting. It is better to use only 30% of your credit limit. - Avoid Collecting Credit Cards Too Soon
For first-time credit card users, start with having only one credit card. Familiarize yourself with using one card first before opening another one. Cultivate proper discipline in managing your spending and repayment habits. Gain knowledge on debt solutions in Pennsylvania as well throughout this ‘trial’ period. - Pay Your Full Monthly Balance on Time
Don’t hesitate to pay off your full credit card balance at the end of the month. Since you are only buying what you can afford, repaying the balance shouldn’t be difficult. Of course, be sure to keep your due date in mind. If you are late in paying your balance, it will go into your credit history. Moreover, you don’t want to pay penalties just because you are late for a day or two. - The Older the Credit, the Better
Keep your oldest credit account open as this helps increase your credit age. Of course, make sure that your oldest credit account is a debt-free book so that it can help build good credit.
Debt Free Solutions LLC helps you maintain a positive credit standing. Share this article to family members and friends so they too can have a good credit score like you!