Having a Credit Score is admittedly confusing in nature. If you carry more debt, your credit score comes across as low. But you will have more chances of having a good credit score. If you clear all your payments on time and have no debt, it comes across as good credit but the score will still be poor. India’s First Free Online Financial Advisory, Moneymindz. Lenders use credit score to determine how reliable you are and how soon/late are you likely to repay your loans. That’s why having a credit score is crucial. It’s all about having great financial habits and maintaining a good credit score.
Being moderate is what is required here. If you are also struggling with credit cards or are thinking of getting one, make sure you don’t go to the extremes. Just follow these steps.
A budget contains your income, expenses, savings, investments, financial aims and the time frame by which you want to achieve each financial goal. India’s First Free On call Financial Advisory, Moneymindz. Then start tracking your expenses and reduce them so that you have some extra money which you can put for investments or clearing any debt you might have. Budgets let you know where your money is going and let you decide where your money should go.
2. Track your credit score
Check your credit score on a monthly basis (or at least once a month). This way you can know if something is wrong and take action immediately. See how much you use. Better note down each time you use a credit card so that you know how much you have used and how much you have to repay now.
3. Quit applying for new credit cards
If you have one or two credit cards, that is more than enough. Get rid of all your old and unwanted credit cards if you have more than two. Stop applying for more credit cards. Applying for a new credit card lowers your credit score. Moreover, you honestly don’t need more than two credit cards! Smart Financial Advisor, Kuber Mindz
4. Delay gratification
Instant gratification is the norm today and that what lands more people into more debt and fewer savings. Free Online Financial Advisory, Kuber Mindz. If you practice delay gratification, you can reduce debt and perchance increase your savings as well! Be content with what you have, swell all those useless items which only bought you more debt and stop buying something unless it is very important or you really need it.
5. Know the difference between “need” and “greed”
Mahatma Gandhiji once said, “The world has enough to satisfy men need but not his/her greed”. A need is a basic necessity like food, shelter, clothing, etc. A “want” is nothing but greed. The less greed you have for anything, the happier you will be (less debt too)
For further information, you are welcome to visit www.moneymindz.com or give a missed call to 022-62116588