How To Improve Your Credit

The word credit can be used to describe variant things in different contexts

Credit can be very confusing for many. It is worthy of note that understanding it, can help you become financially stable and have a better life.

Many of the rave-making leaders in the world of business did not start out very big. Some literally had nothing except their crazy idea and the doggedness to see to it coming through. Some had to start out with other peoples’ money or credit. They started out this way and gradually built up their fortune. The same way many in the past did theirs, so many others are still doing, and you also can do.


The word credit can be used to describe variant things in different contexts.

It can be defined as the ability of a customer to obtain goods or services before payment, based on the contractual agreement that payment will be made on a later date.

Credit can also be described as that trust that enables a person to provide valuable resources to another party without being reimbursed immediately premised on the agreement that the payment will be made at a future time. In accounting, credit can be described as that entry on the right hand side of the account record that describes your income, capital or revenue; it is the opposite of debit.



Why you need to take this serious

Your credit describes your purchasing power in business, it describes the amount of money or funds you have to spend and/or invest. “The man who never has money enough to pay his debts has too much of something else”- James L. Basford. If you are in such a state of never enough right now, you are closer to that state that gives you the chill, or you want to do more than you are currently doing, then this is for you.

The following is a list of ways to improve your credit:

Know Your Assets
Many have heard the word asset but do not really understand what it means. Many people think of what they have as an asset but it is not. In simple terms, an asset is that resource which you own or have control over that can be used to generate cash inflow to you now or in the future. The house, the car you own may not constitute asset to you, in fact they could be taking away from you and causing a debit on your accounting record. This is practically the first thing you would need to know before you can improve your credit.

Cut off Excess and Unbudgeted Spending
Learn to make budgets. Some people make plans to spend, and then look for means to generate the money to match the expense. A better way is to know your income and how much you are willing to spend. On this you should plan your expenses. Going this route, you will never spend above your means. For income and expenditure, there is the Fixed and the Variable. Set aside an amount for that thing that appears inconsistent, put a cap on it, once that amount is reached for your decided timeframe, desist to spend any more.

Identify a Need
Identify a gap, a hole you can feel. Identify a problem you could solve. This could be your passion, and it could not be. The age-long doctrine of doing what you love still stands but who says you cannot love what you do? If what you think you love is not of economic benefits to you, you could look around, identify a need in the society, start out to solve the problem, develop love and passion for it and make a good fortune from it. If what you love does not plug a hole in the marketplace, it may become an exercise in futility. So you want the credit side to grow, find a need, identify how to solve it and release yourself to getting it done.

Good Borrowing
You may not always have what you need to start out. If you have found yourself in the quagmire of a life of being in debt, this may interest you. However, one basic factor you must consider in borrowing is Future Value. You may need to consider this on many fronts in order not to go into error. Conclusion You may not be where you want to be, but you do not have to remain where you are. There is always a way to make better and improve on processes and procedures to achieve your ultimate desired goal to better your credit.

Work with The Customer in Focus
The customer does not want information, rather he wants what the information can do for him.. Develop products that fill the need of the customer, not what satisfies you. You do not necessarily have to be the world’s best bodybuilder to have a profitable fitness or workout center. All you need is to develop the product that makes the customer feel like coming to your center will make him become the world’s best and you might probably have customers from all over the world coming over to your center. And when this happens, you can be assured that they would not come without a charge. They get what they want and you get what you desire – an improved life.

Upgrade Your Association
Build winning team. This definition has stuck with me for a lifetime, TEAM – Together Everyone Achieves More! This I have proven to be true on many fronts. There is this other saying, “we are as strong as our weakest link”. If you desire to improve your credit from the level you were, your association also has to be improved. You cannot walk in the company of fowls and expect to soar like the eagles. You must engage the services of professionals and intelligent minds. This means you have to constantly seek to improve yourself to attract people of greater and higher acumen. Do not be afraid to learn. When you move in the company of people who are upwardly mobile, you will also gain the momentum that will keep your credit going northward. Needless to say, if the companies you keep are those ones who are perpetually retrogressing, then you also know you are going down south.

Keep a Receptive and Open Mind
Do not be afraid to try out new things. Many of the innovations and multibillion dollar organizations that we have now started out from someone or some folks who had the audacity to try out something out of the routine – a crazy idea. That crazy idea over the years gained acceptance and later became the norm we have accepted. Let your mind roam. Do not be too afraid to take risks. There is no one who would not have failed at something, the trick is to fail fast and fail forward. This means like Thomas Edison, you learn of another way not to do that thing you wanted to do. One of the best ways to combat failure is to succeed faster than you fail. You need to set your mind free to receive crazy idea, inspirations that could come in a flash. If you want to improve your present, you may need to change some of the things you presently do.

Comments