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Best Practices for Building Excellent Personal Credit

Acquiring assets is becoming increasingly important in today's economy. It's so important to know how to leverage personal credit as needed, and since building and maintaining personal credit can be tricky, the #MOB is making it easier than ever to navigate.

Mom Owned Businesses has officially partnered with Smart Credit to help you monitor and build your credit, protect your identity, and so much more. Take control of your financial health with information as accurate as what's being reported on your credit bureau reports. Get started today for only $1 and let us know how much you LOVE it!

Mom Owned Businesses is dedicated to helping you start the new year the RIGHT way, building easy to maintain systems and habits that will help take your life and your business to the next level.

Best Practices for Building Excellent Personal Credit

  • Check your credit report.

Checking your credit report is important to ensure that you are managing your financial health and keeping up with your financial goals. It can help you track your spending, identify any errors or fraudulent activity, and identify areas where you have room for improvement. I recommend Smart Credit to monitor your credit report because it gives you access to your updated credit information at any time.

  • Pay your bills on time.

Late payments have a significant negative impact on your credit score, making it more difficult to get approved for loans, credit cards, and other financial products. Late payments result in late fees and interest charges, which can add up tremendously over time. Paying your bills on time not only helps you maintain a good credit score, but also prevents you from losing money paying expensive late fees.

  • Pay down your debt.

Carrying debt can be very expensive and is an extremely inefficient use of your hard earned money. Maximize the impact of your payment with these rules of thumb: always pay more than the minimum amount due on your debt and make your payment before the date interest accrues on your account. If you decide to pay any collections or charge-offs, make sure to negotiate their removal from your credit report and get it in writing before doing so.

  • Reduce credit utilization.

The amount of credit you are using compared to your total credit limit is known as your credit utilization ratio and is heavily weighted when calculating your credit score. Keep this ratio below 30% as a rule. Don't close unused credit cards because lowering your total available credit will have a direct negative impact on your credit utilization ratio and credit score.

  • Dispute any errors on your credit report.

If you find any errors on your report, contact the credit bureau and dispute them immediately. It's important to dispute errors on your credit report because these errors can have a negative impact on your credit score.

  • Consider a credit counseling program.

Credit counseling services can help you create a budget, come up with repayment plans, and provide advice on improving your credit score. Connect with our MOB Partners or search 'credit repair' in our Facebook group (@momownedbusinesses.usa) if you're looking for individualized help.

  • Create a budget and stick to it.

Create a budget and track your expenses to ensure you stay within your financial means. This will help you make more informed financial decisions and stay on top of your bills. Access all of your online banking in one place with Money Manager by Smart Credit.

  • Be patient.

Cultivating excellent credit takes time, so don't get discouraged. With a clear goal and a plan to get there, you can absolutely transform your personal credit. Commit to your budget, pay your bills on time every time, and be sure to review your credit report for accuracy regularly. You will reach your goals!

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