Leverage your credit history report. There are radical but highly effective ways of improving your credit score.
Your credit report determines your credit worthiness in the eyes of lenders. Creditors make use of this information in order to ascertain your credit limit and the rate of interest to be charged on your loan amount.
"Do not accustom yourself to consider debt only as an inconvenience;
you will find it a calamity."
- Samuel Johnson |
Your credit report, comprising your credit score is prepared by credit rating agencies such as Equifax, Experian, and TransUnion, based on your past and present credit transactions.
Credit scores can range from 300 to 850, but you choose to utilize credit, you are better off having a high credit score, somewhere between 750 and 850. Creditors offer lower interest rates and increased credit limits to customers with a high credit score. A high score on your credit history report means that you have used a lot of credit, and that you are paying your installments on time. Creditors know this and that is why they prefer dealing with customers with higher credit scores on their credit history report.
If your objective is to attract low interest rates, then increasing your credit score may initially seem to be the best possible solution, but when you get to know about the other effective options that are available, you will never again think about credit scores - let alone making attempts to improve your score.
If you have not realized it already, you should know that using credit can lead to a type of addiction, which in the long run will eventually worsen your financial problems, even if at present you have a decent credit history report with a high credit score.
You may believe that you can responsibly limit your spending on your own, but if you’ve grown highly attached to using credit, that may not be enough. In real life, the complete elimination of the bad behavior is the only surefire solution for treating all types of addiction. Since debt addiction is no exception, it is recommended that you completely stop using credit.
The effect of living a life without creditcards and high debt payments is extremely empowering to anyone with the desire to achieve financial independence. The need for maintaining a good credit history report can soon become a thing of the past.
If you are already in debt, then instead of applying for new loans it is recommended that you try increasing your income, which can then be used to eliminate your debts, one by one.
You may feel that increasing your income is too difficult, but the reality is that it is not as difficult as it might seem, especially when there are so many alternatives available.
For example, you can talk to your boss about a raise, seek out higher paying position, take on a second or third job part-time, or start your own home business. The income that you derive from these activities can then be used for paying-off your old debts at a greater rate, starting from the smallest loans and gradually moving on to eliminate the bigger ones.
You might have to face a few challenges initially, but if you are really motivated and committed to making positive change in your life, you will quickly be able to overcome even the most difficult obstacles.
You might also be ridiculed by your friends and associates, but you need not lose your cool over such petty things because ultimately it is you who will have to suffer in the event you fail to eliminate credit from your life. No credit history report can show the pride you will feel once you take back control over your finances, and your life.
Living a debt-free life offers innumerable benefits and if you have not yet started on the journey, it is recommended that you take up the challenge right here, right now, before it is too late.
"The only point in making money is,
you can tell some big shot where to go."
- Humphrey Bogart |
|
Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
