While many countries do not have a credit rating system, In the United States, credit is king. Taking care of your credit allows you to access big-ticket loans like homes and vehicles. Credit checks are also often required.
You may have a down payment on a home, but without good credit, it will be difficult to find a lender to help finance your purchase or construction of a rental home.
According to the 2023 FICO report, the average credit score in the U.S. is 717. While this may seem respectable given the maximum score of 850, many Americans are struggling financially. habits which could jeopardize their long-term financial health.
Bloom Credit CEO Christian Widhalm recently spoke street on how to help manage your credit.
Late payments are one of the biggest mistakes people make when it comes to credit, and missed and late payments go up in price with inflation. In fact, “18% of the population was 30 days or worse delinquent on one or more credit accounts” by 2023. As inflation declines, prioritize timely bill payment will greatly help your grade.
“One of the biggest things for a credit score is a positive repayment history,” he continued. “You have to start showing how you’re becoming more positive about your repayment history, which will take time.”
Because of long-term mismanagement of funds, rebuilding credit requires patience and consistency, but Widhalm believes that having a checking account can be a much easier process.
“You can actually report 24 months of your current account history almost overnight,” he explained, “because you can set trade lines on past payments, which can ultimately help your credit score a lot faster.” :
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