how to prevent bad credit

Managing one’s financial life is very important. A good financial history makes an individual’s life easy. This is because he or she will be able to access any type of loan where never he or she needs one. Banks consider such people as individuals who are capable of promptly and successfully paying their loans. To make sure you remain on good books with creditors, it is important to avoid bad credit.Bad credit results from individual having low credit score. Low credit score is normally caused by failing to pay ones loans.
Always pay your bills on time. Keep track of all your bills and make sure that all of them are paid when they are due. If possible you can start the habit of paying your bill like a week before the day they are due. Late payment of your bills will greatly affect your credit score. It will also easily land you in the bad credit group.
Another way to prevent bad is by limiting how you use your credit card. Some people will normally use their cards until they run out of money; if you want to have good credit score, limit your usage to 70% of you card limit. This will create the impression that you do not need loans to keep surviving.
Pay all you bills and do not push some of it forward. Postponing paying of your bills gives creditors the impression you cannot manage finances. Creditors do not like loaning people who they believe are already in financial problem because it is a great risk to loan that group of clients.
Another way to prevent bad credit is by budgeting and strictly following your budget. Budgeting for one’s income helps control one’s expenditure. This will reduce the needs of one taking loan and hence reduced chance of ending in bad credit.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s