Bjorn “Beez” Hendricks, an advocate of financial literacy and inspirational speaker, shares ways to maintain a high credit score.
Credit scores are the reliability factor that helps financial institutions in lending loans and open new accounts. It enables risk assessment and qualifies you for taking out loans at lower rates. When you pay off your debts on time, your positive score opens doors for new investment opportunities too. Beez is a strong advocate of financial literacy and credit. He wants every individual to know about the importance that these 2 topics hold in life and how they affect the business. One piece of advice he often repeats is that it’s not ONLY about your credit score…..but about your overall credit profile!
Beez believes in the quote, “A Jack of all trades is a master of none……but oftentimes better than a master of ONE!” His goal is to help aspiring business owners build multiple income streams by educating them about the structure, business functions, and favorable implementation. He is certified in Lean Six Sigma, Lean IT, ITIL, CISSP, Project Management, etc. All his knowledge stems from experience in corporate jobs at Accenture and Microsoft as a Management Strategy Consultant in Accenture and Microsoft. He shares how you can develop a strong credit profile in order to achieve a high credit score and be on the good side of the financial institutions.
Pay Bills Before Deadlines
Don’t wait for the last date to pass by! Bills for all credit cards, loans, and even online subscriptions for entertainment should not be delayed. Everything is recorded by the credit agencies in your credit reports which can bring your score down.
Paying bills reflects on your responsible character and builds trust with the banks and credit unions. If you do not want an application that is rejected from everywhere, follow this tip. Beez asks people to keep a reminder of monthly payments so they do not miss any deadlines.
MOST IMPORTANTLY, be aware of not only your due date, but your statement date! The latter is the actual date that the financial institutions report information about you to the credit bureaus. So paying on time on the due date, then spending quickly afterwards will negatively affect you if they report that new spend on the statement date.
Use Credit Cards Judiciously
Credit cards provide grade benefits on travel, hotels, flights, food, etc. However, high credit card balances can bring more losses. If you charge your credit card for every extravagant desire, then it will be bad for your credit score. It is often recommended to not go beyond 30% of the allotted credit limit of your card. For the truly savvy credit users, they know that keeping your utilization below 10% is the REAL secret! Below 30% means nothing negative will happen to your score. But below 10% is the only way for something positive to happen to your score!
Beez also recommends using a credit card for anything you would have paid in cash for anyway. That way, you can receive cash back or points for travel and then use your cash to pay off the balance right away. Regulated spending not only maintains the credit score but also keeps your budget in check. You should pay your credit card bills on time and keep a tab of every purchase.
Don’t Get Rid Of Old Cards
If you close a credit card, the bank won’t be able to update the major credit agencies about your credit status. This will give the signal to close your account since it will reduce the average credit age that you hold.
Beez teaches people how to manage credit and scale their business to 6-7 figures by implementing proven strategies for his business. His flair for helping entrepreneurs has made many ideas transform into reality. To learn more about his work, visit his website.