Credit Card Review Blog

3 Steps to Being An A Credit Borrower

Become an “A” Credit Borrower…Easy as 1, 2, 3

“A” credit borrowers get pretty much whatever they want. Lenders trust their buying decisions because they have proven themselves in the past. “A” credit borrowers understand what it means to be a “responsible buyer.” They carefully weigh out the pros and cons of each purchase. They make their payments on time and don’t get too far into debt. Their debt to income ratio is kept low because they use credit wisely. Becoming an “A” credit borrower is simple. In fact, it’s as easy as 1, 2, 3.

1. Chances are, you learned your numbers in Kindergarten. Nowadays, young children are learning their numbers in preschool, and even before then. The point is, you’ve been counting for a really long time. Just because you don’t have graded math tests anymore doesn’t mean you can stop counting. You need to do the math on a daily basis. If you haven’t worked out a monthly budget, you should do it as soon as you can. Sticking to your budget will help improve your credit score. How? Because you won’t be spending more than you make, so your debt to income ratio will go down.

2. Be informed. We are constantly being bombarded with different ways to either increase our credit score, or decrease it. You probably get several credit card offers in the mail every day. Before accepting one of these offers, be informed. Shop around. See if you will be getting a good interest rate. Chances are good that you’ll find a better credit offer online. Be aware of the different types of credit accounts out there. Know what it takes to increase your credit score and the things that can decrease your credit score. Make sure you know the ins and outs of every type of credit account that is in your name. Know what your interest rates are, what fees you may have, your due dates, what restrictions, if any, are on your account, etc. Protect your credit by being informed.

3. No excuses. “A” credit borrowers never use excuses for why they made late payments or why they didn’t pay their account off in full. This is because “A” credit borrowers never let that happen. Let me say that again…”A” credit borrowers never make late payments and they pay much more than the minimum payments. You’ll be charged late fees, possibly overage fees and each late payment is reported to the three credit bureaus. For every late payment on your credit history, it causes lenders to think twice about lending to you. Minimum payments are also the perfect way to trap you into your credit card. Don’t become enslaved to your credit card. Get it paid off every month or as soon as you can. Responsible payment decisions and purchasing decisions will have you well on your way to being an “A” credit borrower.

It really is easy to become an “A” credit borrower. Never stop counting. The moment you stop, you could get way over your head in debt. Stick to your monthly budget and never veer from it. Be an informed consumer. Make sure you know all of the terms to each of your credit accounts. Also, it is important that you make no excuses. Make your payments on time and pay off your entire balance every month. Follow these easy steps if you want to become an “A” credit borrower.