Your credit score has a far-reaching impact. It can help you secure loans and get credit cards. It can even mean the difference between getting or not getting the job of your dreams. Those with no credit or poor credit can take some simple steps to build credit. Building good credit requires slow, steady attention to details.
Timely Payments
One of the simplest ways to ensure a rising credit score is to pay your bills on time. Whether a mobile phone bill or a credit card note, timely payment shows that you are a responsible consumer. If you fail to make one payment on time, it may take several months of on-time payments to get your credit score back to where it was. Further, timely payments mean less interest charged and no late fees, making it easier for you to continue making timely payments.
Charge Less
Your credit score will improve if your cards are not maxed out. Try to keep your credit cards at 30 percent or less of their limit. An even better way to build your credit is to never carry a balance at all. While there is no difference from the credit card company's end between people who carry a balance and those who don't, having a credit card with a small balance that you can pay off quickly is a way to stay out of trouble. This will help you avoid penalties on your credit score.
Secured Credit Cards
Secured credit cards are a way for people with no credit or poor credit to increase their credit score. Regular credit cards allow you to charge up to a predetermined limit. Secured credit cards require you to put down a payment upfront that is your credit limit. If you make regular payments for a year to 18 months, credit card companies will generally promote you to a standard, unsecured credit card.
Piggybacking
You can build your credit score off someone else's by a process called "piggybacking." This means that you are added to another person's credit card or get someone to cosign for you on a credit card or a loan. Make sure you are piggybacking with someone who has good credit -- sharing an account with a relative who never pays her bills on time won't do you any good.
Low Credit
Don't have more credit available than you need, whether you are using it or not. Having 10 credit cards will count against you. Your credit report will show you as carrying a lot of credit, and this may concern potential creditors. Only have as many credit cards and outstanding account as you actually need.
0 comments:
Post a Comment