Introduction
Ensuring no bad credit should always be everybody’s priority. However, this is not always very practical due to hard economic times. Bad credits usually have very huge and negative aspects on one’s financial image and if possible, should always be avoided at all costs. For those who may be planning to apply for loans, they need to bear in mind that bad their bad credit history may always be used to determine whether they are qualified for these loans or not. The good news is, there are steps that people can always follow to ensure no bad credit and enable them get loans or mortgages at will.
Step 1
One should always ensure that they pay their credits in good time. This is the easiest way to ensure no bad credit since all debts are always settled within the required time. This would avoid incurring extra costs like fines that one would be charged for late payments. It also improves one’s credit score and enable them have access to loans with a lot of ease.
Step 2
No bad credit normally needs one to be much disciplined with their finances. They should never go beyond their credit limits and this would increase their debts making it little bit difficult to repay. Going beyond one’s credit limit would damage one’s financial image and it may change how financial institutions view such people even if they repaid these debts in good time. Going beyond one’s credit limits would not be good for the people trying to achieve no bad credit status.
Step 3
In repaying debts, one must always ensure that they do not only pay the minimum amount required to keep their credit cards active but should pay the biggest amount of credit they can afford to. Not only will paying minimum debts increase the debts one need to repay but they may also end up paying more for goods they should have bought at very low prices. Paying one’s debts beyond the required minimum will enable them to have no bad credits and ensure that they are in very healthy financial status.
Step 4
Credit cards can always be very easy to handle and can help one have no bad credit if properly handle. However, majority of people do not always realize this and end up misusing their credit cards resulting into a lot of bad credits that they may not be able to handle.
Step 5
One should always start slow by acquiring credit cards with low credit limits to see how they work and how easily they can manage these debts before applying for credit cards which allows for large credit limits. This will ensure that one only uses their credit cards to the limits they can easily repay. This will avoid borrowing too much and can easily ensure no bad credits.
Conclusion
Having no bad credit usually calls for proper financial management to ensure that one only borrows what they can repay within the required time limits. If one becomes careless with their finances, then no bad credit may be a dream to them and they will always be in bad credits for most of their times. Such people may spend most of their working hours in trying to correct their credit scores.
