Get Smart About Credit: Tips & Advice
Did you know that every third Thursday of October is National Get Smart About Credit Day? If not, well now you do! This year, national #GetSmartAboutCreditDay falls on October 17 and we are going to help you get ready for it.
What is Get Smart About Credit Day?
Get Smart About Credit Day is an event that occurs once a year put on by the ABA (American Bankers Association). All over the country on this day, and throughout the fall, bankers volunteer to visit classrooms to teach and educate young people the importance of using credit wisely.
For many people with a bank account, it is mandatory to maintain a good credit statement as it is an important financial tool. Don’t let your credit score fall under without a proper understanding.
3 Ways to Get Smart About Credit
To help you kick start “Get Smart About Credit Day” on October 17, here are some helpful tips to discuss that could help increase your credit intelligence and improve your credit profile.
Discover three ways to get smart about credit:
Understand what impacts your credit score
Many different companies consider different information when working our your credit score.
Here are a few ideas of what can impact your score, a few basic rules include:
- Payment history – if you have a history of paying your bills on time, it could positively affect your score.
- Length of credit history – the length of your credit history represents how long you’ve been in the credit system. The longer your positive credit history, the better it could reflect on your credit score.
- Number of accounts – the different types of accounts you use may also impact your score. Keep your accounts in good standing, as it could reflect your credit score.
Cancel any cards not in use
Financial troubles can happen to anyone at any time. If you decide to switch credit card providers or bank accounts, don’t forget to cancel any existing agreements, even if you no longer use them.
Here are some tips to effectively cancel your cards:
- Reduce the risk of fraud – An open account you hardly ever check up on may be more vulnerable to fraudsters, who may pretend to be you in order to spend money in your name.
- Improve how lenders see you – Having lots of credit cards – and an overall high credit limit – could make lenders think you’re too reliant on borrowing. So, cancelling one or more cards could increase your chances of getting approved for credit again in the future.
- Ask questions – As you get close to reaching an agreement, ask questions if you feel unsure about any of the details.
Create a plan to improve your credit score
In order to start heading in the right direction of improving your credit score, you need to create a useful plan to guide the way.
Here are some tips to improve your credit score that may help you create a personalized plan:
- Pay all monthly bills on time – Forgetting to pay bills can damage your credit score. So, set up direct debits to pay your utility bills, phone and credit card payments.
- Identify and change bad habits – Alternatively, if you take out a payday loan and repay it when agreed, it can actually have a positive impact.
- Talk to family or friends with good personal finances – If you know someone with no credit card debt, ask if they’re willing to share some tips.
Although “Get Smart About Credit Day” occurs annually, the knowledge you obtain can be applied every day. The more you learn, the closer you’ll get to acing your next credit score.