| any other citizen, I have my share of obligations. I earn, | | | | if you borrow too much and do not pay on time. For |
| I spend, I owe. I have to admit I do go overboard and | | | | this kind of spending habit, you are given a very low |
| sometimes spend more than what I earn. The excess | | | | credit score meaning you are a very high credit risk! |
| of what I spend becomes “the | | | | Low credit scores slim down your chances in having |
| obligation”. Now it’s called an obligation | | | | your credit card application approved. It would also |
| because we are all responsible for paying for what | | | | affect your future transactions with a bank. Banks also |
| we spent. Ergo we are forced, er, obligated to pay. | | | | use credit scores in deciding whether to grant you a |
| Now having just one credit card is more than a world | | | | loan or not. |
| of convenience. It is also a great temptation to spend | | | | Just like everybody, I have been thru the trials of being |
| more. Why? Credit cards come in handy when you | | | | judged whether I am a credit risk or not. I have devised |
| don’t have cash readily available to pay for | | | | ways on how to improve my Credit Score quickly |
| your bills or purchases. Credit cards are a leeway for | | | | which I will impart to you in the next paragraphs. |
| you to extend your credit and payment deadline. You | | | | How to Improve my Credit Score Quickly? Simple, |
| are given the facility of “buying time”. | | | | learn the art of saving before spending! Typically, once |
| It’s not always that easy to be bestowed with | | | | we have our paycheck we automatically list down all |
| a credit card. Credit card companies are wise when it | | | | the things we need to pay for and spend on. Then |
| comes to giving you that credit facility. First, they look | | | | whatever is left of our money that is what we set |
| at your credit scores. “What’s | | | | aside for savings. Wrong! Learn to take out at least |
| that?” you say. | | | | 20% of what you earn for savings. Then allot the |
| Credit scores is a credit risk rating lending institutions | | | | remainder of your budget for bills payment and |
| give an individual who wants to borrow money from | | | | household spending. In that way, you will be spending |
| them. Lenders have the uncanny ability to dig deep into | | | | within your means with a little money set a side. If |
| the dirt and find all the information about your credit | | | | banks look into your savings accounts and see a |
| history. What we individuals don’t know is that | | | | steady flow of deposits coming in every payday, it |
| we leave a paper trail of our financial status. Bank | | | | would look good for your credit history. They tend to |
| records, previous credit card purchases and payments | | | | think you will have the capacity to pay for whatever |
| are all recorded. Financial institutions have access to | | | | obligations you may incur in the future. |
| this information and base our credit scores on them. | | | | Pay your bills on time! If you can pay your credit card |
| Credit scores are based on how we spend, borrow | | | | bills installment premiums fully on the due date that will |
| and pay for all our obligations. You are a high credit risk | | | | definitely increase your credit scores. |