You cannot underestimate the importance of solid credit. Many people have an idea of what they think their credit score is but don’t fully understand the factors directly influencing it. The best thing you can do first would be to get a copy of your credit report. Once a year you do get one free, however me personally, I like to utilize KIKOFF’s service. In doing this, I get two birds in one stone improving my score and monitoring it simultaneously.
Credit is one of those things you can control as soon as you are aware of how its built. It’s fairly easy to do as long as you don’t bite off more than you can chew. I advise people to build it up as soon as possible because credit age is a process that will inherently take time. This also makes you more resistant if situation came where you needed to utilize some of your line in emergency. Self is also another popular credit improvement service that has excellent reviews.
With just these two tactics alone you can place yourself ahead in combination with on time payments, responsible usage, and proper planning. Take advantage of the financial resources around you, whether it be online or in person. Place yourself around the information. Do your research and do your own financial experiments and see what happens. It’s never too late to improve your financial literacy and situation. In fact, the best time is right now.
As an entrepreneur, I realized the implications of not having a good score. I dealt with inconvenient situations because of it. I learned first-hand, do not miss any payments. Sometimes we just have so much going on we forget to pay, or a situation prevents us from doing so. Whatever the case, you can bounce back with consistent effort and focus. The most important key factors influencing your score are payment history, utilization ratio, and the age of your accounts.