There are three major reasons why a person’s credit score goes down. Having too much debt, not paying bills on time and leaving errors on the credit file undisputed. The bottom line is, you’re overcharging your credit accounts and underpaying them. If money is the issue—then, it’s time to do some saving up.
So, if you’re asking, “How can I improve my credit file ASAP”, here are some money-saving tips to help you.
Having a proper budget is necessary if you want to pull through that savings plan. Being a student means having to pay tuition fees, buy projects, or even buy the essentials you need at home if you already live independently. Knowing exactly how much money you’ll have- as well as the money you need to let go of at the end of the month (bills) – will help you in making your Budget plan. Then, from that, you could identify how much money you’ll be living off of for the whole month, or even the following months.
Credit cards? No thanks.
Credit cards might make you look cool in front of your friends or classmates. But, that doesn’t mean that you also look cool in front of the Bank your credit card came from. Remember, credit cards are little pieces of plastic cards. When used, you’ll need to pay off the amount you borrowed while using it, or else interests might be fired in. Credit cards shouldn’t be used by students often since they still don’t have enough income to support the overflowing bills that might come at the end of each month.
Most schools in college offer dormitories where the students could stay in for their whole College life- but some don’t, or just don’t have enough accommodation space for the other students. If ever you are part of the unlucky few that don’t have dorms, choosing the proper apartment before the school year starts is essential. It should be safe, near campus, and most of all, cheap. Always pay one month ahead so you wouldn’t have to worry about the next payments. Also, even if the apartment is cheap and is within your price range, it shouldn’t mean that you have to go for it immediately. You need to make sure that its safe, and that there’s electricity, water, and all the necessary things needed.
Food isn’t really THAT expensive if you settle for what’s practical instead of what’s costly. Going out every week to buy yourself the groceries you’ll need. If you know how to cook, that’s a plus. But if you don’t, then I suggest you learn how from those cooking shows and cooking books online, because it would really save you a lot of money. Plus, cooking at home means the food is safer and healthier. If ever you want to eat out, only do it if there are special occasions so that you are still able to save.
Buying things out of impulse might be the cause of your savings’ downfall. Discounts and Sales might seem pleasing at first, but they may not be necessary. Buying things that you don’t need will just add up to the money you subtract from your monthly budget- which also means that you should say Goodbye to your savings before it’s even gone. If ever you see an item that you really like on sale, it doesn’t mean that you have to automatically buy it. You could just save for it and buy it when you’ve got enough money to pay for it – even if by that time it’s not on sale anymore.
Transportation might be a little expensive when you’re not living in the campus’ dorms. If ever you don’t, try looking for an apartment near the main campus so that you won’t have to pay so much for transportation. The cab and the bus expenses when added up might even turn out to be more expensive than the apartment itself. Plus, if the apartment you’ve found is near campus, you could just jog or walk to it- which means you get to exercise too.
Saving money on a daily basis can help you eliminate nuisance credit card balances and unpaid bills. With lesser debts charged on your cards, your utilization ratio will decrease, and your overall debts will lower as well. Consequently, your credit score will improve as well.
So, next time you feel tempted to use that piece of plastic to buy expensive items, which you do not really need—think of its negative consequences. And, every time you feel discouraged to save money—remember that the lesser money you spend, the more payments you can make on your exiting debts.
If you want more answers to your question, “How can I Improve my credit file”, contact the DIY Clean Credit and we will help you understand the basic rules of improving credit ratings. Make an enquiry today!