Most adults know exactly how important credit and finance are, but many are still confused by how these things work or how best to manage their own. Without any professional advice, finances can get extremely confusing and can also become stressful and cause anxiety. If you’re feeling a little bit lost or are struggling and need some help, here are 5 credit and finance tips anyone can use.
Keep Track Of Your Credit Score
Everyone has a credit score, but many people still aren’t aware just how important their credit score is and how much impact it can have on their lives. Regardless of whether you’re over the age of 70 or just graduating college, your credit score is important. Though it may be just a number, it is extremely important to be mindful of what your credit score is so that you know what your limitations are when it comes to spending and such.
Many things in this world require a certain credit score. For example, anytime you apply for a new credit card, a home loan, a car loan, a personal loan, or a number of other various things, they will check your credit score before approving you. But hard credit inquiries like these will also lower your credit score so it is a good idea to avoid applying in the first place unless you’re pretty sure you will be approved – which is why you should always know what your credit score is.
There are many free sites out there that will show you your credit score at any given time. You have 3 with 3 different bureaus, so your true credit score is actually an average of the 3.
Don’t Spend Money You Don’t Have
Having credit cards is very helpful in emergencies, but be careful how often you use them and what you use them for, because credit card debt can rack up quickly and can be difficult to get out of. Extreme debt can also easily ruin your credit if you don’t pay it off quickly enough.
In order to avoid getting into trouble, never spend money you don’t have unless it is a true emergency. Put things on your credit cards only if you can afford to pay them off immediately.
Don’t Share Private Financial Information With Others
Never share passwords to bank accounts or other important financial information with anyone, no matter how much you may trust them. If someone knows how to get access to your finances, they can not only steal money from you but they can also completely ruin your credit. Be innovative with your passwords and stuff so that they are not easy to guess, and keep all of this information to yourself in order to avoid devastating consequences.
Credit and finance tips that are out there may not work for everyone, but the ones on this list will so give them a try and see if they help you to feel more confident about your current situation.