Having a good credit score is important if you want access to plenty of things that make life sail smoother. You’ll never know what could happen to your finances in the future, and it can be bothersome to see your credit dip suddenly. Here are some surefire methods of increasing your score while making things easier:
- Ice Your Credit Cards
Keeping your cards on the ice means keeping the accounts linked on them open, but without you spending on anything major. When you stop or minimize using credit cards, you can show a maintained credit history without having to accumulate debt.
While this method only works if you can control your spending habits, it’s a great way to establish long-term creditor relationships on any excess cards besides the ones you consistently use. Closing the accounts won’t necessarily have any positive effect on keeping up your credit history.
Store those cards away and stop using them. From there, you’ll have more space to start paying off any debt you may have accrued. Once that is cleared, you can even have your credit limit raised. This lowers your ratio on your revolving balance, if you can stick to the plan of still not using the card even after the limit increase.
Of course, you don’t want your accounts to go stagnant either so every now and then, use them for small charges.
- Use Your Insurance Wisely
Stuff like life insurance doesn’t have to be relegated to a benefit that will only be reaped upon your demise. In higher-crime zones like Los Angeles, it’s both practical and financially sound to get a life insurance lawyer. With a lawyer, you can get a return on your payments when you live past your term. It may seem like a grim thing to bank on, but it works as an investment that adds to your financial security.
In terms of how this can directly affect your credit, with a good lawyer, you can exchange your built-up assets when you want for monetary value.
- Spend Strategically
It may seem counterintuitive to spend when you’re trying to raise your credit, but strategic purchases can help you get a better rap sheet with your creditors – if you’re not putting yourself in debt.
Assess the investments you have or are looking into and see which ones can provide value for your profile in the future. Focus on your immediate payables, and make sure your utilities are paid for in time. Then, start paying off your credit cards based on their balance. Look at your bills and get rid of the higher balances with high ratios first.
From there, pay off your accounts preceding their intended cutoffs. If you must buy something with these cards, it will be easier to catch up on your payments with this method. However, in general, you’ll want to avoid having to pay later than you must if you’re avoiding a big drop.
Maintaining good credit is more about long-term practices that can cater to your lifestyle, but these methods can help if you need to bump up your points quicker. From there, they can be steppingstones to a balanced credit score.