Economics Research Paper

Having a good credit history will be a huge part of making a successful personal and financial future for yourself. Your credit history determines if you can purchase certain things or not like buying a house or a car. People and businesses will use your credit history to see how well you kept up with your previous payments to judge whether they can risk making a similar agreement with you. If you don’t pay your bills on time that’s a way of lowering your credit. Cell phone companies, landlords, lenders, insurers, sometimes employers often make decisions about their clients based on your credit score. There’s various ways of obtaining good credit:

Manage your credit. Keep track of your spending. Keep tracks of the checks you have written and credit card transactions. Review your monthly statements when they arrive in the mail or online. Always report any errors on your statements immediately to your bank. Another way to manage your credit is by not exceeding the credit limit on your credit cards. Pay what you owe. Always pay at least your minimum monthly payment. By overpaying the minimum or even better the full balance of each month will reduce the charges. Never skip any payments or it will lower your credit score.

Making timely payments is one of best ways to establish a good credit. Be organized, put all your bills in one particular place so you don’t forget to pay them. Pay attention to the due dates of these bills. If you’re a type of person who always forgets dates, sign up for automatic payments. It automatically takes the exact money for the payment from your bank account. It’s a convenient way to regularly make your payments and not miss the due date.

Another thing is to avoid impulse purchases. A lot of people say that impulse purchases are hard to pay off. Avoid putting things that you’re buying on impulse on your credit card. While planning your budget for the month, leave some space for a few impulse purchases.