It’s a situation no one ever wants to be in, but it’s one that you may face in your lifetime.
Picture this: You’ve just been arrested, you’ve been booked and given a bail amount, and you’ve called someone for assistance. Now, you sit and wait in a holding cell while a loved one contacts a bail agent to help obtain your freedom. However, there’s a problem. The bail agency cannot issue a bond because, after running a credit report, their credit score isn’t high enough.
This is a serious problem because now you’re forced to sit in jail and wait until your court appearance. However, this is an avoidable problem. The answer is simple – keep your credit score up so that you never have to worry about it being too low to be approved. But what exactly is a good credit score? There is no right answer, however, according to Experian a credit score can range between 300 and 850. See below for an in-depth look at the credit score breakdown, courtesy of Experian.
In order to help ensure you and your loved ones have a good enough credit score to be approved for a bail bond, a home, or anything in between, we’ve compiled a list of three steps you can take starting today.
1. Pay your bills on time – According to Credit Karma, one of the most important things lenders care about is the likelihood you are going to pay them back. This is determined through your history of paying your bills on time. By paying all of your bills on time you show lenders that you’re reliable and will uphold your end of the bargain.
2. Pay off your debt – In order to grant you a loan, lenders want to ensure that you have enough room in your monthly expenses to be able to afford another bill. Be sure to pay down your current debt as quickly as possible so you have room for unexpected necessities.
3. Don’t open too many credit cards at the same time – When you open a new line of credit, it creates a “hard line” on your credit report which stays there for two years. This could create a negative effect on your credit report.
If you’re looking to increase your credit score, it’s important to know what your score is. There are a lot of free websites that will allow you to check it for free, utilize them. Keep in mind that improving your credit score takes time and doesn’t happen overnight. You’ll want to ensure that you follow these three tips every month and develop good financial habits.