Having good credit is essential to a healthy financial well-being. This is due mostly to the fact that obtaining loans is a necessary part of life, and the availability of these loans is based on having a good credit score. Having a good score will help you buy a car, purchase a home, get lower interest rates – even obtain certain jobs.
Building Your Credit
So, how do you build good credit? If you don’t have credit, one of the easiest ways to start is to open a credit card. Search around and find one that doesn’t have a service fee and has a lower APR. At TopLine, we not only offer credit cards with tons of features, but they also come with many perks! Both the Platinum and Platinum Rewards VISA cards are loaded with benefits:
- Low variable APR based on your credit history
- No annual fees
- No over-the-limit fee
- Free eStatements
- Free online account access
- Automatic payment options
- Cash Advances
- VISA’s Zero Liability Program
- Worldwide travel and emergency assistance
- Free auto rental collision damage waiver
- Warranty Manager Service
Calculating Your Credit Score
If you already have credit, it is important to know where you stand. Before you request copies of your credit report, make sure you know how your FICO Score is calculated. That will help you understand how to read your reports and what each score means. Here is a breakdown of the ranges of credit and what they mean:
- Excellent Credit: 750 +
- Good Credit: 700-749
- Fair Credit: 650-699
- Poor Credit: 600-649
- Bad Credit: Below 600
The steps to find your credit score are as follows:
- Obtain a credit report – you are able to have one free copy per year. Make sure that you get a credit report from each of the credit bureaus: TransUnion, Experian, and Equifax.
- Compare and contrast the reports to find any discrepancies.
- If you find some that are inaccurate, be sure to dispute them right away. The longer they remain on your credit report, the more they bring down your score.
Improving Your Credit
Whether your credit report looks to be in good shape or needs improvement, it is important to consistently stay on top of it. The two easiest ways to do that is to reduce the amount of debt you owe as fast as you can and to set up payment reminders so that you don’t default. One of the fastest ways to pay off debt is to use the Debt Snowball Method. People have paid off tens of thousands of dollars in the matter of a few years with this strategy. You can also check out consolidation options to make payments easier and to lower interest rates. At TopLine, we offer personal loans as a form of debt consolidation.
Extra tips for how to improve your credit can be found here.
There are many benefits of having a good credit score – it simply makes life easier. You will see the benefits of lower interest rates and more financial opportunities open up for you like never before – good credit opens doors. Don’t go another day not knowing where you stand or having a bad creditor further lower your score.