Your credit score is a reflection of your liabilities against your assets, as well as your tendency to make regular payments towards them. The hard part of getting your credit up is consistency, knowing where to start is easy.
Having a bit of debt is okay, and paying it off should be your priority but not so much that you dump your savings into it. Remember, assets offset liability on your credit report, so even if you can afford to pay it off in one shot, lenders don\'t expect you to. Since consistency is what they look for, take advantage of your debt by making your minimum payments, on time, every month. This is the absolute most effective way to improve credit, borrow, and pay it back consistently.
First of all, you should never use these things to specifically improve your quality of living. Spending a paycheque before you have it because you can will only plummet you into a cycle of high interest rates and living on debt. I recommend this strategy to those who already have a savings account as they know how to budget properly. We can call this the controlled debt strategy. While paying debt regularly is great, interest can add up. With a credit card or line of credit you can borrow a small amount each month and pay it the next, just enough to show the credit bureau how reliable you are!
Money saved works as an asset in itself. This means that if your credit rating is so poor that you can\'t even get a visa to make those payments on, you aren\'t out of luck. The simple fact that you have money to your name is evidence that you are a safe bet for lending. In combination with steady work history, I\'ve seen some mortgages be accepted on these alone.
So as you can tell, your credit rating is actually a pretty accurate representation of your reliability when it comes to borrowing and consistent repayment. There is always something you can be doing to work towards a better rating, so don\'t procrastinate, start today!
I personally make the effort to ensure the best possible product to fit your individual needs, all with a single credit check.
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