There are some things people always do not pay attention to. Saying about your health it will be the food you eat and your weight. And regarding your finance it is your credit score that you always ignore when you manage your financial life.
However it should not be like that, because a credit score is the first requirement that loan lenders and other financial companies have when you apply for a loan.
I guess that you are always demanding for better terms and conditions when you deal with loan lenders. However your credit history might be not corresponding or just be absent at all.
So if you want to make good agreements with different financial unions, you should pay more attention to your credit history. And you must understand that it all comes from good managing your balance.
Here we have some easy tips that will help you to deal with your credit score:
1. Stick time. You might delay paying to your vendors, if it is good to your company’s balance. However you should never miss paying your personal credit card account. It does not only influence on the interest rates you have to pay, but also influences your future ability to take a loan. Moreover the information about late repayment is written down to your credit history, and it can cause difficulties even in your business life.
2. Divide your balance to different credit cards. Unlike investments, where you should have more money, your credit balance should not be over limited. It is always better to have small balances on different cards that will prevent your lender from thinking you are trying to get as many reward points as you can.
3. Do not make transactions from one card to another. It is always beneficial to shift your money when you have the possibility to pay lower interest rates on one card. However you should never do this with your personal credit cards, because it will be a bad sign to your lending service informing that you have not enough money to repay the bill. You should pay back all your debts, and only after this make any movement of your balance.
4. Apply only for several cards. If you apply for too many credits, and even if you do not use them, that will indicate your instability and make your lenders worry. It is better to make good credit history and proove your reliability to all lenders you want to deal with. Such behavior will make lenders relay on you and set better requirements and lower interest rates.
5. Avoid filing for personal bankruptcy. If you have your business going down, you can always close it and begin the new one. However it is not so easy with personal credit history. If you have difficulties with repaying your loan, you must do anything you can to get necessary amount. You can always apply for a short term loan from the online service that does not demand any credit history. This will help you to solve unexpected monetary problems and repay the main loan on time. Moreover it will not hurt your credit history at all. Otherwise if you file for personal bankruptcy, you can have it marked in your report for the future 10 years.
In the end I want to recommend you not to panic, if you have problems with your credit history, but just understand your past mistakes and try to lead wise financial life in the future. You should pay more attention to your spending and try to make savings in order not to miss the date of repayment.