Let’s not beat around the bush here. Everyone wants to have a great credit score but not everyone is disciplined financially. Many people abuse credit cards, racking up consumer debt on clothes, fast food, luxury items, and really just things that they don’t need. What happens is that these same people can’t pay off the debt when the payment is due. So, they make the minimum payment month after month. Credit card companies take notice of these transactions and give them a horrible credit score. Because they got themselves into a hole, banks and credit unions won’t give them loans for things more important like auto loans or even mortgages. The good news is this doesn’t have to be you. If you use a credit card the right way, it can actually be very beneficial. In this article, I am going to be breaking down the top way on how you can improve your credit score using a very simple method.
- Pay off all debt
In order for your credit score to get better, you must show credit card companies that you can pay off the debt. When you finally get above water and make regular payments like you are supposed to, you will most likely notice that your credit score has improved. If you are dealing with larger debts, I would highly recommend using the debt avalanche method. This is where you pay off the debt with the highest interest rate first. This saves you money over the long run.
- No cash, no credit.
If you can’t afford to buy something with cash, don’t buy it. For beginners, I would recommend using credit cards for minor expenses like gas and groceries, things you know for sure you will be able to pay off when the payment is due.
Out of all the credit companies out there, I would recommend going with GreenSky Credit. At GreenSky Credit, they are very credible. GreenSky Credit has a staff that is committed to giving you the best loans possible. GreenSky Credit also has funded over one billions dollars worth of loans over the years. In the end, choosing to do business with GreenSky Credit is a wise choice.