Good financial habits can help you create a positive credit profile. Once you start your credit journey by availing a card or a loan, your credit profile will be created. When you apply for a loan or a credit card, lenders will check your CIBIL Score in order to understand your credit profile. That is the reason why it is important for you to have good credit habits. Work towards good credit habits and a positive credit profile you will see about a positive impact on other aspects of your life too. But what exactly is “good credit habits”?
1. Always pay on time
The most important step for sure. Doesn’t matter what you do in the next steps – you can’t build a positive credit profile without paying your bills on time. If you’re behind on any payments, try to bring them current as soon as posible. Try to build a habit to not miss any payments.
2. Low credit utilization
The lower your utilization, the better. If you can have your credit utilization under 15-20% it will be the best, but don’t let your utilization go above 30% since this will harm your credit score.
3. Keep an eye on your credit score
Try to check your credit score regularly. I know this sounds strange, but checking your credit score regularly can help you detect any problems that might be brewing.
4. Apply for more credt only when needed
Buying new things is fun and we all love to have the latest smartphone, the latest smartwatch and etc. However try to make a difference between what you want and what you need. In the long run – this might be the difference between having a good credit card score and a bad credit card score.
Here at Oxnard Auto Finance we help people get financing to buy cars. Show us your credit habits, our online loan request form is easy, quick and it’s free. Don’t waste time – start today. Drive today.