The economy is an odd place. The job market is fluctuating. One thing’s for sure, credit makes the financial world go ‘round. If you don’t have credit or have a bad score, building your credit score and subsequent financial abilities that you can take advantage of is imperative. Even if you have a lot of money, you won’t be doing as much as you can with it if you don’t have a high credit score. Below are a few ways to build a good credit score and become universally trusted for borrowing money at a low interest rate.

Pay Off What You Owe Immediately

The most important thing to do is to pay off the money to your creditors and lenders immediately. You should never pay the minimum. It’s absolutely imperative to pay back whatever you have borrowed or put on your credit card. When you pay off what you’ve borrowed right away, as any debt consolidation consultant will tell you, the interest won’t go up and you will build your credit score. Failing to pay the money that you owe off immediately benefits you in the way that you won’t have the money on your mind and to keep the interest rates as low as possible.

Take Out a Credit Loan

Another option that may sound counterintuitive is to take out a credit builder loan. This is a great way to build your credit because it is a bank-held Certificate of Deposits (CD) that you pay off in monthly installments. Since each payment gets reported to the three credit bureaus, they build your credit score. All you have to do is pick a plan and your payments. You’ll get your money back and increase the health of your credit. If you need the money for something, kill two birds with one stone and take out a credit builder loan.

Pay Back Student Loans

One of the most harrowing situations when it comes to debt is paying back student loans. Much too often people have a difficult time paying back their college loans after they’ve graduated. While it is intimidating and easy to put it off because it’s stressful, it’s pivotal to pay back student loans as soon as you can. The money that you owe for going to college can be exorbitant. Student loans are the cause of much anxiety, stress, and despair. If you have student loans, paying them off as soon as possible will do wonders for your credit score.

Check Your Credit, But Not Too Much

Credit bureaus are made up of human beings and humans make mistakes. When it comes to your credit score, it is based on what money you owe and how long you take to pay it back. Luckily you can see your lines of credit and dispute certain payments that aren’t accurate. While it’s very helpful to get rid of inaccurate debts, you should be careful to not look at your credit score too much. Each time you check your credit, it can actually negatively impact your score.

Mortgage a Property

Can you afford to buy a house or another property? If so, you can mortgage a home to build your credit. Each time you make the monthly payment, your score will go up. So often families can afford a mortgage but can’t afford to buy the property in cash. This can actually be a benefit because you can build your credit at the same time. If you don’t have much credit but get approved for a mortgage, you’ll be able to increase your score and find the house of your dreams.

There are many ways to build credit. It depends on your situation. Do you have bad credit you need to improve? Start by paying back the money you owe as quickly as you can. Don’t have much credit at all? Take out a credit builder loan or mortgage a property. Whatever your situation, there are a variety of things you can do. With everything so uncertain as far as the economy and the job market, you should do your best to get rid of the money you owe. If you do, you’ll not only have the chance to stay on top of your finances, you will mitigate all the stress that comes with having debt.