How to Create Triple AAA Credit

Excellent or "triple AAA" credit can lead to thousands of dollars in savings in finance charges over a lifetime. A three-digit number, called a credit score, reflects the current status of your credit. Privacy Rights Clearinghouse, a nonprofit consumer information company, reports that credit scores range from 350 to 850, with scores of 720 or higher indicating excellent credit. A credit score in the 720-760 range will lead to the best interest rates on credit cards, auto loans, mortgages, lines of credit and more. The FICO credit scoring system determines your credit score based on information on your credit report. Positive credit information is needed for excellent credit, while negative information reduces your credit score.

Instructions

1

Obtain your credit report and score. Order your credit report from AnnualCreditReport.com (see Resources). The website is the only site endorsed by the Federal Trade Commission to offer free credit reports under the terms of the Fair Credit Reporting Act. Order your credit score separately, for a fee, by following instructions on the credit report.

2

Review your credit report to identity any negative credit information, including accounts that are showing as past due or assigned to a debt collection agency. Make payments to bring all active accounts current. Then contact debt collectors to make payment arrangements on collection accounts. Ask debt collectors to delete negative information from your credit report in exchange for full payment -- a process called "pay for delete." The debt collectors aren't obligated to agree, but you can ask.

3

Pay down your revolving debt. The MSN Money website reports that your balances on credit cards and other revolving accounts should not exceed 30 percent of your credit limit. Strive for even lower balances for excellent credit. Many people with excellent credit pay their credit card charges in full each month.

4

Open new credit lines. Apply for department store cards of full-featured credit cards such as a MasterCard or Visa. Make small charges for necessities and pay the cards off in full each month. The new accounts could help boost your score over time.

5

Make at least the minimum payment on all your accounts before the due date. Timely payments and low credit balances are the two most important factors in creating excellent credit, according to Privacy Rights Clearinghouse.

6

Track your progress by ordering a new credit report and score about every four months. You're entitled to three free credit reports a year from AnnualCreditReport.com -- one each from major credit bureaus TransUnion, Equifax and Experian. Your credit score must be ordered separately each time, for a fee.