Need a healthy credit score? Spend carefully.
Here are some bad money habits that might drag you into a trouble.
Sometimes having a bad credit feels like a curse, as it is completely beyond your control, and almost impossible to fix.
Maybe it feels like that but it’s not the truth.
Although there are many cases where bad luck or misfortune incidents, which are totally beyond your control, can cause the financial crises and degrade your credit score. There are many cases where the real culprit of this whole situation is bad money habits.
Even when it comes to unfortunate incidents, having a good cash flow gives you some strength to survive. So it’s better to be prepared to deal with the situation. For example, you have a large big private equity fund, means that you do not need any loan at the time of financial need.
So, want to repair your poor credit rating? Fix the bad money habits which are the reason for this. Here are some bad credit habits you need to fix today!
1. High credit utilization and making only the minimum payments.
When you are making loan or bill payments on time it will represent your good credit rating. Your credit utilization, the amount you owe and the monthly payments are some major factors that play a major role in your credit report. A high credit utilization and minimum monthly payments mean you need more time to pay off the debt. So making the payments as high as you can.
Carrying some balance on your card from month to month means that you have to pay the interest on that balance. In simply means that you have to pay more money.
Rather than using your credit card too much you can choose an alternate option- car title loan. Yes! Car Title Loans Canada is providing title loans against the car title in Victoria. You can take the loan without losing your car and it will be easy for you to handle the things.
2. Not having any savings for any unexpected emergency.
If you are not able to make a cash cushion for any uncalled situation, it will be termed as your worst money mistake. Losing your job suddenly or any medical emergency is some of the situations where you need cash. But without having an emergency fund you will fail to handle the situation. It can drag you into a debt. You must make some arrangements for such situations and give yourself a security that the unexpected expenses won’t hinder you.
Being a debt saddle, your credit score deteriorates. Two steps you need to take to create an Emergency Fund:
- You need to increase the bar of your monthly savings and deposit as high as possible. So that it can be easily accessible in or around six months or whenever required.
- Create another 18-24 months cushion to withstand more serious situations.
Confused how and where to cut your expenses? Eliminate your all the non-essential expenses for a month. You need to differentiate between your needs and wants. The day you are able to do so without failing you will be able to save more.
3. Being Too Casual About Saving.
If you don’t have enough savings for the emergencies or to live easily after retirement, it means that you are not serious about saving. You are just living your life comfortably by swiping your card and believing that everything will be fine automatically but you are wrong. Things won’t take care of themselves. You have to make some efforts to balance them.
Saving money is not just putting some money aside after 2 or 3 months. For saving you need a proper plan and stick to it. It takes time to learn how to save quickly and effectively.
Starting saving at the young stage can create a high level of hope to build a healthy relationship between money and goals. Money can be one of the most disappointing as well as empowering components but 100% that we've prescribed! Saving for the long-term goals at a younger age is very important but keep the interest and accounts buildups in your mind if you are on your own behalf before the age of 40. As after that, some long-term savings like retirement might be expensive.
Automate: If you want to make your life easy then automating is the best way. All you have to do is set an automatic transfer to the savings account.
Separate: Saving money in a savings account is very hard when you are having both accounts with the same bank. As every time you check the balance it feels like you can spend some more. It is a good idea to have a checking account with some other bank. When you open these two separate accounts the money seems less available. In addition to this, you will also get some interest.
4. No Budgeting
The day you fix this bad habit more than half of your problems will get solved. No budgeting means you are not keeping a check on your spending, hence, fails to cut your unnecessary expenses. You can either note down in a notebook or notes on your smartphone or better having an app connected to your bank account which can alert you about your spending pattern.
5. Not paying any attention towards the credit score.
It’s obvious that not paying any attention towards your credit score on time means you might get a shock later. You need to figure out the current status of your credit score and make a plan to reach your destination. Review your credit reports on the annual basis.
6. Not having any Insurance or health plan.
Having an Insurance plan means you can deal with the unforeseen expenses like car or home repair, medical bills etc. If you are on a tight budget and not able to buy any insurance plan or health plan, you need to find some way so that you can survive the situation. If you have a car registered by your name you can go for the short-term loan with Car Title Loans Canada. We are providing car title loans in Victoria. People who feel like they don’t have enough money to handle all the things can come to us anytime. We welcome people with any kind of credit score.
So to have a good credit report you must have a good credit score or history. And the day you will be able to manage your expenses and cut off these bad money spending habits, you will be able to save enough money. For any necessary spending, you can get a car title loan in Victoria rather than using your credit card too much. To apply for the loan, call us at 1-855-653-5451 (toll-free).
Comments
Post a Comment