Did you ever wonder what’s the one thing you should be doing with your credit?
Quick Answer: Pay your bills. On time.
No hidden agendas, no fine print, just pay your bills. On time. More importantly, make sure those are the ones reported to the credit bureaus.
Depending on if it’s a FICO score or a Vantage score, paying your bills on time makes up 32-35% of your credit score and will immediately start to improve your credit.
There are companies, like your car insurance company, that will use your credit file to determine what your rates will be. The cable company uses your credit file to determine whether or not you need to pay a deposit. These bills are not reported to the bureaus, but the companies are using your credit score to rate you.
“When you pay your monthly living expenses on time, but then your report-able credit items late, it eventually results in higher monthly living expenses.”
The main focus is always be to consistent with paying your report-able credit items on time. Paying your bill on time for six months, and then you miss a payment? Back to square one.
There’s no reason to have to start all over again, especially when there are so many tools available to help remind you when those credit cards are due.
Life isn’t perfect. You can be in a financial position where you’re forced to decide which bill to pay. There are still options to try to come out of it with your credit intact. You can have your payment date moved to suit your finances. Decide to pay the credit card before the cell phone or cable.
Or maybe you may have to cut the cable all together?
~V
Velma
Latest posts by Velma (see all)
- Does getting married change my credit score? - December 1
- What’s NOT considered in your FICO score - November 30
- What is a FICO score? - November 30