We live in a rush life. We work to go home and work again, but nothing is ever enough. The globalization process has shown all of the perks and benefits of life for each of us and thus we are always aiming for more. This is why we always try to make as many as possible and want to achieve even bigger and better conditions.
It does not happen often that we all have all of the means in order to make everything happen. To buy everything we want, to go anywhere we want or to invest in something we want. Thus the tendency of taking loans and borrowing money has increased a lot and thus, many people are addressing banks in order to get some money in assistance.
Thus, working with banks is not always the best idea as you need to understand the whole procedure and the obligations which come with taking the loans from the banks. It is very important to acknowledge that there are certain steps that need to be taken while taking a loan and paying it out.
It is very important to be a good client and to have a clear history in the bank in order to be able to work with the bank in the future. Unfortunately due to one reason or another not many people manage to maintain the perfect credit scores, yet we will try to outline some of the key points which shall definitely assist you in achieving the perfect credit scores.
Pay bills on time
If you have taken a loan from the bank and want to maintain a good and clear history in the bank you should make sure that you are a good payer and pay your bills on time. This is very important as the clients who are always late with the payments are mostly transferred to the blacklist and this is not something you would like to happen to you.
Remember the date of the payment of the bill and make sure that you have enough money on your card by that date. This way you should avoid any unexpected charges and be late with the payment of the bill. Remember the good history in the bank shall allow you to use the bank and the loan for any other time in your life as well.
This is another very handy and a very important thing to consider. Almost every bank and especially the mobile bank applications enable you to set up automatic payment schedules. The procedure is very simple. You select the date and the amount of money that should be transferred to the bank monthly. This is another great way to avoid being late with the payment. You also do not have to worry about the payment every month, but instead, have it scheduled automatically.
Usually, there is even the function of changing the dates, which should also assist your payment if needed. But overall, automatic payment is one of the best things you can do in order to be on time and maintain a good credit history.
Entertainment which hurts your credit score
There are many activities which people take up as entertainment and thus they do it occasionally. One of these activities is gambling. Gambling has become very popular nowadays and many people all over the world gamble on different websites and find this activity very entertaining.
While from one side it is definitely an entertaining activity, from another side it might be actually less appealing to your credit scores. Obviously, banks do not disclose your personal information and every single transaction or payment, though they often consider gambling-related transactions as bad.
Frequent gamblers might be unable to take big mortgages and credits, due to being blacklisted because of the gambling transactions and perhaps some loans related to those transactions. Banks definitely do not tolerate gamblers and systematic gambling transactions, yet if you decide to occasionally play real money roulette online or any other online casino games, it should not affect your credit score significantly.
Stop checking your credit score
This is something that many people do, which is not really healthy at all. Checking your credit score daily or even monthly will not lessen the amount of money you have to pay and you won’t help it via simply looking at it. Instead, it might affect you psychologically. While checking it monthly you will not be able to see a big difference in numbers, though if you check it once every six months or so, it will definitely awake in you the feeling of satisfaction as you should be able to see a significant difference between what you had in total and what you have left for the moment.
Take risks and increase the limits (when you can)
Increasing limits is not a common habit for most of the clients. Many people are simply afraid of increasing the limits for loans. Even if their salary has doubled in amount, they are still very afraid to change the limit of the loan. This is understandable as there is little uncertainty in the future and many people do not want to risk it all.
Yet, if your finances let you increase the limits you should make the step. First of all, this will help you in covering your load much quicker. The second, it should make you feel more confident and the last but not the least you were able to take a risk and so might be able to drink champagne.
Don’t open accounts when there is little sense
Some people think that opening a new account is good and it looks better in the eye of the bank. Well, this time having more does not mean that it is better. Usually having one account, which is also good standing is very much enough for good credit scores.
There is little sense in the opening accounts without any purpose and especially without any financial benefit to it. Opening a credit account makes sense when it’s an exceptionally large purchase, such as a house or car, or when it’s a large purchase that would strain your checking or savings account. In other words, avoid opening multiple new credit accounts just to save 10% on that $29 shirt you want.
Check your credit report annually
Almost 60% of the clients fail to check the credit report annually and thus one in every three agencies makes the mistake in the calculations and fails to fulfill the records correctly. This is why it is essential for you to keep an eye on what the agency or the bank is doing in order to avoid any misconceptions and mistakes, which might actually lead to some extra fees and charges you do not deserve to pay at all.