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TRICKS TO IMPROVE YOUR CREDIT SCORE IN BILOXI

TRICKS TO IMPROVE YOUR CREDIT SCORE IN BILOXI

We all need a raise at one time or the other. It could be a loan to fund a research project, start up a business, or cover for an emergency. Often, we don’t see it coming. To this end, there is a need to prepare for it. Being in a city budding with commercial activities of diverse nature, residents of Biloxi usually are always trying to raise their credit score so they can be a loan recipient whenever they need a credit.

Needless to say, paying bills on time is one of the basic things to do if you want to raise your credit score. Your credit payment history accounts for up to 35 percent of your loan eligibility score. To do this effectively, you do well to take note of due dates for all your bills, avoiding late fees. One thing that has proved to be effective in this line is the splitting of bills. In a way, Bi-monthly payments (the practice of splitting your monthly payments in two) help you avoid late or missed payments, thereby keeping your credit score healthy. Here’s how to improve your credit score and avoid late payments and fees using this route.

Raising your Credit Score; the details of bi-monthly payment of bills.

Bimonthly payment of bills goes beyond dividing payments in half and paying twice as often. There are things you need to do to make this work correctly for you.

 
Make a list of your bills and their respective payment details.

Make a list of your recurring bills and due dates (dates on which their payment will be due). Once you are able to get this done, you can assign two days each month to pay every one of the outlined bills. This might not come easy, especially if you have a lot on your list. It is not necessarily because you do not have the money to pay. However, making payments all the time could be stressful. In fact, you might possibly skip a payment, and it elapses its due date.

To make this method easy, you can choose to pay bills each payday after getting paid from your work or business. Another issue comes to play here. Mode and interval of payment vary from persons to persons. For example, some get paid daily, some get paid weekly, and some get paid monthly. There is yet, a category of individuals whose payment is irregular and depends on some unpredictable factors.

So, if you’re consistently paid on the first and the 15th of each month, this will be easy for you. Just make sure you settle the bills as soon as you get paid by measuring up your monthly bills and divide them by two. For example, if the summation of your bills in a month is $3,000 you’ll want to pay $1,500 in the first half of the month and $1,500 in the second half.

Realistically, the amount you owe on bills is expected to vary from month to month, so it is only logical that your bi-monthly payments will also fluctuate. You do well to look out for this anomaly and make room for it when budgeting for the sorting of the bills.

 
Why BI-Monthly Payments is good for Your Credit Score

Asides making sure that your credit card history looks good. We have been talking about how to integrate bi-monthly payments. One thing we are yet to mention is this; bimonthly payments in some cases are just as important as settling your bills before their respective deadlines. To this end, let’s see three ways bi-monthly payments can raise your credit score.

 
  • Bimonthly payments can reduce credit utilization.

Basically, reputable loan experts say that the debt-to-income ratio should be less than 36 percent for any individual who wants to stand a good chance of being eligible for a loan. This sounds logical because the less debt you maintain, the higher your chances of winning the lender’s heart.

Making payments twice a month reduces your DTI throughout your billing cycle if the lender applies for the payments twice a month. A lower DTI increases your available credit and your credit score. This opens you up to the opportunity to apply for a loan anytime and wants it.

  • You’ll pay down debt faster.

Think about it; when you embrace bimonthly payments, you’ll be paying the debt faster. By paying off your debt just a little faster, you push yourselves in prime position to be considered for loans when the time comes.

  • Bimonthly payments help you cultivate financial discipline.

The bimonthly plan is not an easy ride. There are sacrifices to be made. You might have to cancel that all-girls trip you and your friends have been planning, that game night with your friends might have to be boycotted, and a lot of other fun you might miss out on.

However, when you decide to adopt a bi-monthly payment plan, you are less likely to miss or be late on a payment. You also get to attain financial maturity. You are conscious of your spending, and you do not go overbroad. As time goes by, you will find out you are able to achieve the chief objective of the exercise.

 
Conclusion

You might want to treat building your credit score to make you eligible for a loan when you need financial help, and keeping a good credit score helps you to be among those qualified to obtain a loan in Biloxi if you put a conscious effort into it.

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