There’s a good chance that at some point in time you’re going to want to buy a house. There’s also a good chance that you’re going to own a credit card somewhere along the way as well. Well there’s a link between the two that draws these items together, and that link is known as a credit score. I am about to drop a few major keys on ways to keep your credit score in good shape to buy that dream house of yours.
5. Use your credit card: You have to actually use your credit card to affect your credit score. Don’t max it out though, as that can have a negative effect on your credit score. Not only that, but maxing it out could also mean that you’re going to have a hard time paying your bill for the month.
4. Pay your credit card bill on time: Once again, you have to use your credit card to affect your credit score. But the effect on your score is determined by how effectively you pay your credit card bill and how fast you do it. Doing it on time will keep your score in good shape and possibly even raise it if you do it early.
3. Don’t spend more than you can afford: Now chances are, if you are using your credit card then you can’t afford what you are attempting to buy at that moment, and that is okay. However, you have to keep in mind that if the amount you make in a month is not enough to pay for the combined total of everything that you bought on credit, then you probably shouldn’t spend all of that money. If you can’t pay the balance off in a reasonable amount of time, it will bring your credit score down.
2. Monitor your spending: Make sure that you monitor your spending to make sure that your bill at the end of the month will be within your budget. Monitoring your spending also makes sure that there is no one else using your credit card and ruining your credit. You can often call your card provider, get text alerts, and/or download an app that will keep a record of your transaction history. It depends on who your provider is.
1. Use your debit card: You should always remember that you have card that accesses your bank account. If you don’t have enough cash on for purchase, you can always use your debit card to pay for it right at that moment which stops you from adding too much money to your credit card bill. Keeping that bill as low as possible is ideal.
Now that you know how to keep a good credit score, it’s time to put that knowledge to use and work towards that dream house of yours.