How to Obtain a First Class Credit Rating

Having a first class credit rating will qualify you for the best rates on mortgages, auto loans and other types of loans. But to obtain a high rating, you have to use credit responsibly and know the ins and outs of credit. There are several ways to obtain the best credit score. Regardless of whether you have no credit history or a poor credit history, simple changes can add points to your FICO score

Instructions

1

Contact your bank or credit union and complete an application for a secured credit card. These cards are ideal for anyone with no credit history or bad credit. To qualify, you'll have to pay a security deposit.

2

Pay attention to due dates. Missing a payment or sending a late payment reduces your FICO score. Keep a calendar nearby and jot down your due dates. Submit payments before or on the due date to maintain a first class rating.

3

Maintain a low balance. Maxed out credit cards lower your credit rating, and this can result in higher interest rates on loans. If possible, pay your credit card balances in full each month.

4

Check your credit report. Credit reporting errors and identity theft can have a negative impact on your credit record. Order a copy of your report once or twice a year to check for erroneous remarks.

5

Keep unused accounts opened. Regardless of whether you use a credit card, do not close the account. This can shorten your credit history and decrease your credit score.