There are several things that you can do to improve your credit worthiness to enable you borrow money whenever you need to.
First strategy is to borrow
Yes, many people are reluctant to borrow. But many lenders are reluctant to lend money to first time borrowers without a credit history. When you have proven that you can borrow and repay, you establish a track record that will make lenders more willing to lend to you in future. If you have never borrowed, that means you have no track record and so it becomes difficult to determine if you will be a faithful borrower.
More important than borrowing, you must establish credibility by paying your loans when due. Do not allow payment due- dates to go pass without you paying whatever installments is due on that date. Skipping payments on due-dates can destroy your credibility for future loans.
Set up direct debits
To make sure you repay your loans on due dates, you can set up direct debits on your bank account, so that all due payments are automatically taking out of your account when due without your intervention. This ensures that you never miss any payment dates which builds up your credibility for future loans.
E-mail alerts can also help
Where you do not have a direct debit mandate on your account, set up texts or e-mail alerts that lets you know when a loan repayment is due. This alerts should alert you preferably, a day before pay-day to ensure that you repay your loan as soon as it is due.
Always try to march your loan repayment date to your pay day, especially if you are a salaried worker to ensure that you, payment is due just when you have money to make that payment.
Do not borrow more than you can pay
Ensure that you do not borrow more than you can conveniently repay. Many banks have a policy to ensure that you do not borrow more than 60% of your salary. Our advice is that your cumulative debt should not exceed more than 50% of your salary.