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This part makes a big difference. You have to show that you are responsible
with your money. Your ability to
pay your debts on time is a factor
credit companies will look at when determining how much money to lend
you and at what interest rate. Paying your bills on time does take planning,
but by creating and following a realistic budget and financial plan it will
become as automatic as brushing your teeth in the morning.
Creating order and routine into your financial plan is important. Routine makes it much easier to follow the plan. Paying your credit cards off before the due date should become part of all the other routines you have in your life. life. Those of you that have small children will appreciate this fun, related story. Real Life Story: Getting my 3 year old daughter ready for bed at night used to be challenging. She had no interest in bedtime and was very distracted. I solved this problem with routine and went so far as to keep quoting the same one word reminders throughout the bedtime preparation. We both now know what has to happen when each of these words gets spoken: "teeth", "hair", "potty", "jammies", "animal" (stuffed of course), "let's chat" (with Daddy!), and "lights"! Now that we have a routine in place things just fall into place! All these things used to be hard but the repetition of routine has made it each event automatic. It is important to remember it is not just credit cards and loans you have to pay on time for the benefit of your credit rating. For example, electric and gas bills, rent to a landlord, and even your gym membership can be part of your credit rating; and the timeliness in which you have been paying them is listed on your credit report. For your own peace of mind and for the sake of your financial success you ought to plan on paying every bill on time all the time. Simply assume that everything you do with money could end up on your credit report. |
