The Importance of Good CreditMarch 17, 2020
This post is sponsored by Lexington Law but the content and opinions expressed here are my own.
A good credit score goes a long way! Yes, many of us know that a good credit score can help secure lower interest rates on credit cards and loans. However, did you also know that having a good score can give you more negotiating power when making a big purchase and improve your chances of getting approved to rent an apartment/house. Even car insurance companies, utility providers and cell phone services look at an individual’s credit report. Today I’m talking all about credit, including some of the credit repair services at Lexington Law.
Now that I’ve established why a good credit score is important, let’s take a look at some ways to increase one’s credit score.
- Always pay your bills on time. In fact, payment history is one of the strongest influences on a credit score. Set up automatic payments or give yourself a calendar notification every month to pay before the due date.
- Think about your credit utilization ratio. Credit utilization is a ratio of the balance you owe on your credit cards in relation to your credit card’s limits. The general guideline is to stay under 30%. The lower that ratio, the better. Also, a smart tip is never to close old credit cards – leaving them open but not using them will directly improve your credit utilization ratio.
- Monitor your credit score for inaccuracies. Identity theft and simple accounting errors can quickly spell trouble for your credit report. If you catch something inaccurate on your credit report, the professionals at Lexington Law can help. Keep reading to find out how!
Since college, I’ve been quite fascinated by financial wellness topics. Over the years, I’ve read book after book on managing one’s money, investing for growth and planning for retirement. As a result, I believe we’ve been pretty responsible with our money.
- Student Loans: While I received full-tuition scholarships to college (both undergraduate and graduate,) my husband graduated with a fair amount of student loan debt. We have been paying off his student loans every month on time and as of now, we have paid off about 95% of the initial balance.
- Home Mortgage:When we purchased our home, we put down over 30% as a down payment and took out a conventional 30-day fixed mortgage. We have set up automatic payments so we don’t have to remember to pay each month. In fact, a few years ago, we saved up a good chunk of money and refinanced our mortgage, by applying some of our savings to the principle of the home. This simple move reduced our monthly housing expenses significantly and also gives us the peace of mind of knowing that we now own that much more of our home.
- Credit Cards: We both own and use credit cards but we never charge more than we can pay off in full each month. In fact, one of our rules is never to carry a balance on the cards from month to month.
- Vacation: Just like other expenses, we never take a vacation that we cannot pay for in full right away.
- Auto: We currently own two vehicles, both of which were paid outright. I’d rather have a less expensive car that we can purchase in full than have to take out a loan for a more expensive car.
Good credit has given me the peace of mind of knowing that our finances are in order. As a mom, I’m trying to teach my daughters some basic principles of responsible money management. It’s not rocket science, folks – some simple common sense is all it takes to keep one’s credit in good shape.
Regardless of your specific credit situation, the professionals at Lexington Law are available to help with your financial goals. Whether that includes repairing your credit, removing incorrect items from your credit report, credit coaching or credit monitoring, Lexington Law is a name you can trust.
Did you know that according to BadCredit.org, Lexington Law is a #1 ranked credit repair company that provides free credit consultations and credit repair assistance? By taking advantage of consumer rights to resolve issues with creditors, Lexington Law is tirelessly committed to fair & accurate credit reports. Stop worrying about your credit and take action today.
With over a decade of experience in the industry, Lexington Law has helped hundreds of thousands of Americans improve their credit thanks to attorneys, paralegals and agents across 18 states.
Sign up today to stay on top of your credit with help from the professionals at Lexington Law!
I am a strong advocate about paying my bills as soon as possible. I learned this very soon after I married my husband and our high scores are a reflection of this.
Yes, yes, YES! I keep telling this to my 23 year old, but of course he thinks he knows it all. I’ll share this article with him!
I am glad there are places to help with credit! I am thankful that I have good credit. I always make sure I pay bills on time.
These are really helpful tips. I have to make sure to share this company with my friends and family who are trying to work on their credit.
If there’s one thing my dad really drove home for me was that you don’t spend more than what you make. I always pay off my bill each month good credit is so important!
A good credit score does take you a long way. I instill this into my children.
Good credit is a must if you plan to use credit to purchase things. I am using cash or debit to pay for things now, in my years I have learned that saving is the best! So hard to do though!
I think it’s so important to have good credit too. My husband and I have very good credit. We are very careful when it comes to bills and such.
Thanks for these tips and advice. They are fundamental for those that want to have a good credit.
I’m going to pass this along to my friend who is working on improving her credit to put a down payment on a car.
Credit really is such an important thing I think often people don’t realise just how much it will come into play when you want / need things later on.
This is very helpful especially to those who’s establishing their credit. I have to say using my credit card and pay it off on time along with other bills really helps a lot on my credit score.
Me and my husband always make sure we keep our credit healthy. Paying bills on time and avoiding impulse purchases helped a lot to keep our budget in check. I will share this post with my grown up kids. They still need some good financial advice to help manage their cash flow.
Could not agree more. Having a good credit score is crucial and these are great tips you’ve provided. I have a credit score which is I strongly value. Great article.