Managing Credit
We are smack in the middle of the year, hope so far all has been well for you. For the longest time, taking loans or getting a credit card has been deemed as sin, but today I want us to revise that. Yes credit can be risky, but it doesn’t mean it can’t work for you and should be avoided like plague.
The number one rule of responsible credit use is to always pay your bills on time! Late or missed payments have a big impact on your ability to secure new credit. But, there is more to being a better borrower than making timely monthly payments. Lenders consider the full financial health of an individual who is applying for a credit product, so you will want to make sure that your credit portfolio isn’t lacking in any key areas.
Borrow only what you need! With all types of credit, including your student loans, make sure that you aren’t borrowing any more than what you truly need. Always consider the impact that swiping your plastic can have on your future finances.
Pay your credit card bills / monthly loan payments in full every month. This will help you not carry forward owed money. Carrying forward will in the long run make the monthly payment sum a bit too heavy for your pocket to handle. Once the sum is big, chances of you not honouring the payments terms will be higher
Build a budget. Developing and sticking to a realistic personal budget will help you to better understand what you can and cannot afford and can even help you to plan and save for large future purchases, like a house.
Focus less on your credit score, and more on developing positive, lifelong habits. You are more than a number, and it is more important to be in good financial health than it is to have a perfect credit score. Work on reducing your spending and eliminating your debt.
Make credit work for you! If you’ve been borrowing money and repaying on time, then your credit score should be good over time. You can make use of your good credit score and apply for unsecured personal loans. These loans require no collateral or guarantors. The I&M Unsecured Personal Loan for instant is easy to get. All you need is to do is download the I&M OTG App to apply. You’ll have the cash you need in 24hrs!
As I finish off, my final advice would be only go into debt if the money you are borrowing will be put to good use. This is because misused or unnecessary credit will for sure hurt you financially.
Yours Faithfully
IMBA
