October Is Credit Awareness Month
Understanding and being aware of your credit rating is an important part of managing risks and taking opportunities when they arise.
Do you know how to use credit cards appropriately to improve your credit rating? Do you even know what it is? Well, it's a good thing October is here!
This month, it's all about learning the fundamentals of credit. What it can do for you and your business, how you can use it to excel, and other credit essentials.
About Credit + Tips
If you're an adult, you are most likely accessing credit, which means it's crucial for you to be aware of its potential. Misunderstanding or misusing your credit rating can lead to unfortunate consequences.
In October, credit professionals are striving to teach everyone else about credit, so it's the best time to get started.
Learning and becoming more aware of credit benefits you greatly in terms of:
● Managing your finances
● Keeping on top of your income/outgoings
● Utilizing the credit you might have
So it's great whether you are running a business or not!
When we talk about credit cards, it's a payment card which you can use to purchase items. You won't need to pay for these items immediately, though.
Instead, you need to pay the amount back a later time (depending on your credit provider, the circumstances vary). Usually, there is a small percentage put on top of the original price.
For credit rating, how well you manage something like credit cards will affect this rating significantly. The credit rating is a given score for lenders to determine whether or not they should lend to you.
This determining will occur when you want to apply for a new credit card or for other credit scenarios, such as a mortgage.
The best way to take the most advantage of this Credit Awareness Month is to keep on track with your finances more efficiently. Here are some good tips to get you started:
● Take note of all of your incomings and outgoings
● List all essential payments - e.g., rent, food allowance, medical
● Put aside money from each paycheck to pay off cards
● Pay off your credit debts as soon as possible (improves credit rating which is ideal for future applications such as mortgage loans)
Adhering to an optimal credit-building and rating strategy can really transform how your business or funds are perceived by lenders, industry professionals, corporate peers, and even yourself.
Become more aware of your credit this Credit Awareness Month and see how much of a positive change you can make with your credits!