How Can I Get an Outstanding Credit Report or Score?

Your credit score is one of the things that could make or break you when trying to get a loan, buy a house, lease a car, apply for credit cards, rent an apartment or almost any other major purchase. Once your credit score falls behind, it's not impossible to rescue it, but it will take some time. Depending on how bad your credit score is, it could take years of positive activity before it is restored to an outstanding state. The best path to an outstanding credit score is to keep up and never fall too far behind.

Instructions

1

Pay your bills on time. If you have a credit balance that has to be paid off--loan payments, bank fees, rent or any other obligation--you have to pay them. In most cases, you don't have to pay them in full, but you will have to make some sort of payment. Making a minimum payment will show your lenders that you are making an attempt to pay off your bills. If you make no payment, your credit will get reported to the credit bureau within 30 days. Some companies wait 60 days and others may even wait 90 days. You will have to double check before you want to take a chance. Your best bet is to make a payment before it is 30 days overdue.

2

Buy stuff using credit. The only way to build your credit up is by using it. If you have a credit card, make a plan to buy everything on your credit card, but make sure you have the cash to pay it back at the end of the month. Whatever you would buy in cash, just buy it on your credit card and pay it in full at the end of the month. This will show creditors that you're using a lot of credit, but you can pay it in full when you have to. Eventually, your credit limit will raise and your credit score will go up. Every line of credit you open up can help you build your credit. You just have to make sure you make your payments on time. Once you start making payments well past due, you credit score will go down. Don't open up more lines of credit than you can handle.

3

Don't apply for additional lines of credit if you think you'll be denied. The more times you apply for a credit card or a loan, the lower your credit score can become. Three or four applications is the norm, but once you get up to eight or more applications, your credit score is at risk. Creditors can see how many times you've tried to get credit and denied, and this will eventually hurt you. If you really need some credit, check your credit score before you apply. If your score is above 620, you will likely be able to get most loans and credit cards. If you're below 620, and even more, like below 580, you will get denied by most firms. You will need at least six months of solid activity to build your score back up.

4

Open a checking account. Having a bank account in positive standing for at least six months is a sign of stability for lenders and will help build your credit up. Don't overdraft or bounce checks. If you do, pay them back immediately. Writing good checks, making deposits and withdrawals all help you establish your credit. But remember, none of this will transfer to your credit score overnight. It takes months of excellent standing to get an outstanding credit score.

5

Open department store credit cards. If you frequently visit a couple of stores, look into their credit cards. Having more credit cards will help you have better credit as long as you pay everything on time and don't open up too many.