Getting your credit score to 700 and keeping it there or above is the objective of any astute business owner, or consumer who has developed a basic understanding of the financial process. Borrowing money without a 700 credit score or better will cost you interest and time searching for credit options.
The process comes with specific directions, but these steps will help you get prepared to bring your credit score to the best numbers possible.
# 1 – Pay your bills on time or before due. Paying an additional payment every month, or as often as possible will help your on-time payment be of even greater benefit.
# 2 – Pay credit cards off each month. If not paid off, keep them under 20% of the allowed credit limit to increase and improve your overall credit standings.
# 3 – Automate the process of paying any monthly bills. Make the extra payments soon after the due date, or as soon as the bills are accrued.
# 4 – Pay off any outstanding medical within a month or two of their occurrence, to prevent any late pay penalties.
# 5 – Establish a habit of prepaying your credit card accounts. Send the money when you create the bill instead of when you get the bill.
# 6 – Keep a high balance in all bank accounts to prevent accidental over drafts or additional bank charges against your accounts.
# 7 – Routinely invest in savings accounts and savings plans that will be reported to your credit reporting agencies.
# 8 – Create an emergency fund so you don't have to borrow against your credit cards when you do have a financial crisis.
# 9 – Plan for financial difficulties and have a pre-set, established method of dealing with layoffs, job loss, credit deficiencies and emergency situations.
# 10 – Use cash instead of credit to 'eat out'. How you use your available credit is almost as important as how you pay it off … Use CASH only for small purchases.
# 11 – Follow a budget. Decide how much you will spend each month and NEVER shift from that budget except maybe to save yourself some money.
# 12 – Build credit responsibly by using a card for regular purchases and paying it off as used.
# 13 – Establish savings goals and routinely deposit money into those accounts.
# 14 – Build credit growing relationships with your bank, credit union, and local lenders.
# 15 – Increase your income whenever possible to improve your buying power, but don't always spend the increase. Save some for the inevitable rainy day.