Think like a Lender
If you think like a lender, you can see which habits and traits you need to develop in order to be considered a good credit risk. Thinking like a lender will help you understand how you must manage your money to be appealing to lenders. There are few tips that can put you into the right mind set:
Tip: Know how money works
Reading books about money and understanding how your accounts and loans work can go a long way towards helping you keep your credit in good repair. For example, if you know that some loans will charge you extra if you pay off your loan faster while others will not, you will be in a better position to make financial decisions.
Plus, the more you know about money in general, the more comfortable you will feel with it and the better decisions you will be able to make, which will help improve your overall financial state and will help you keep your credit in good shape.
You don’t need to do heavy-duty research to appreciate how money works. One easy way to consider money is to think of it the way you think of time. You likely hate to waste time and you want to make the best use of it possible. Apply the same attitudes to your financial life and watch your finances soar!
If overspending has caused you to have a bad credit score, consider the following sneaky mind set trick: equate your money with your time. For example, if you make twenty dollars an hour, then a magazine subscription of $20 will represent one hour of your work.
Imagine an hour of your work and ask yourself whether the subscription is worth the time you put into the twenty dollars. Once you start seeing money as something that comes from your hard work rather than a general “thing” impulse spending will seem much less attractive, and it will be easier to keep your credit card limits low and you bank account stocked up with cash!
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