Lifestyle Tips

Keep Your Credit Score Out of the Red Zone the Easy Way by Using Credit Score Apps

Having a good or bad credit score can be the thin line between leading a relaxing and satisfying life and a complete nightmare where you face a financial obstacle no matter what you intend to do in life. Even if your credit score is above 700 which is considered to be a healthy score, you still need to be careful and make sure that it doesn’t drop just because of one minor mistake.

To avoid unpleasant surprises or even if you want to improve your score, you can use apps specialized in monitoring your “financial health”. Besides making it easy to always keep an eye on it, by doing some basic tracking you’ll see opportunities to make your finances a lot easier. Here are 3 tips on how to keep a healthy score.

Understanding Your Credit Score – Basics

Having a good credit score means more options for what you can buy. If you’re thinking of getting a house or a car, for example, your credit score will seriously impact your possibilities. Imagine your credit score like your dependency score, in other words, a number that tells banks if there’s a risk or no risk to lend money. Since banks don’t enjoy taking financial risks, they won’t really feel comfortable lending money to someone with a score that’s 550 for example.

Credit scores range from 300 to 850 points, and a good credit score typically falls between 670 and 850 points. On average, most individuals’ credit scores fall somewhere between 600 and 750. Things that impact your score either in a positive or negative way are your spending habits, paying off your credit on time, etc.

One big element that can impact your score negatively is irresponsible spending mixed with an unfortunate moment where you lose your job for example. But to avoid that you need more than just organizing your spending habits. You also need a good understanding of your personal score.

How Your Score History Can Help You Fix Bad Spending Habits

Think of your credit history as your personal financial journal where everything you ever did is recorded. Although most of it might look like boring numbers, if you know where to look, you can pinpoint mistakes that you can easily patch up and prevent from causing serious damage. The first step we recommend to avoid situations where you wake up one day with a blocked bank account is to get an app for credit score monitoring. We did some digging and found a cool list of credit score tracking apps only. Check it out and see if you find an app that’s perfect for your situation.

Top 10 Credit Score Monitoring Apps

What’s great about these apps is they do all the organizing work for you so you don’t have to waste 2 hours every day ensuring everything is updated. By figuring out your daily or monthly habits, it becomes much easier to fix if there are any cracks in your strategy. For example, if you notice that every month you’re a day or two late with your paying your monthly credit rate, you can instantly start working on it since if you continue that bad habit it can easily lead to your score suddenly dropping.

Ways to Keep Your Finance & Score Secure

One of the most common ways somebody can endanger your financial safety is obviously identity theft. Over a single night, everything you’ve been building for years can fall in ruins and to avoid that, you need a bit of security. Luckily, most of credit score apps today come with a strong wall of security, but for even more you can reach out to your bank and ask for advice. Currently, there are 3 major credit bureaus that have been around for a long time and are traditionally considered extremely safe.

But, many new credit monitoring services are emerging every day and one of the reasons you might feel inclined to try alternatives is better options for you as a customer. If you’re considering to do that, make sure you do a proper check up on the service beforehand and see what kind of security measures they are taking. As mentioned, something like identity theft can pummel your score and take it from a safe green zone to red zone in a second.

Finally, keep in mind that the protection doesn’t mean 100% safety from security breaches, but they will inform you the moment something bad happens so you can react straight away and prevent any serious damage.

Conclusion

Although keeping a healthy score is more than just making a few taps on your phone, these 3 tips are a solid start for anyone who doesn’t know much about it but like everyone else, want to make sure their score stays healthy.

In the end, it all comes down to keeping healthy spending habits, paying your debts regularly and keeping a safe eye on your credit score. If you do those 3 things, you can be sure the doors to buying whatever you want will always be open.