Your Credit Score affects every important part of your financial life. Some employers check it as part of a background check for a new employee, to see how responsible you are. The owners want to see your report and credit score to know whether or not you pay the rent on time. A good credit history is a necessity for any large loan such as a home or an auto loan. And your credit score affects the price you’ll pay for auto insurance as well.
If your credit is not in the optimal range of scores, some simple steps are recommended to get there:
◾ Use your credit cards sparingly, perhaps to pay some living expenses, such as a fuel tank or buying food.
◾ Never keep debt at the end of the month, it represents more than 15% of your total credit amount approved.
◾ Pay each card in full each month.
◾ Never miss the deadline of your card for payment.
If you follow these steps, it will not cost anything to increase your score, and you can build a great credit rating in the short term. You can also apply and qualify for credit card companies with rewards programs or cash incentives. However, if you ever had a large debt on your cards or you feel the urge to spend more every time they increase the limit of any of your credit card, then I would not recommend this path of action. Even the greatest credit card offers can be a slippery slope for people with a mentality of spending.