How to Get a Good Credit Rating

Do you want perfect credit? Well, it's easy. Just pay all of your bills on time, every time. Never miss a payment. Never pay your bills late, not even by one day. If you're like most people, you have missed at least one bill payment at some point in your life. And, more than likely, you have inadvertently forgotten to mail out at least one check on time. Most people do not have a perfect credit score of 850. In fact, there are many who are not even in the 800-neighborhood. With a sound financial plan, and a little self discipline, you can improve your credit score.

Instructions

1

Pay your bills so that you will have positive marks on your credit report. Unpaid bills lower your credit rating.

2

Pay your bills in a timely manner. A bill that is even just 1 day late may adversely affect your credit rating. Mark the date that your bills are due on your calendar so that you don't forget. You may even want to set up automatic payments, making your bill-paying system worry free. Always pay at least the minimum required monthly payment.

3

Use your credit, but use it responsibly. You can't have a credit score without credit. But that doesn't mean you should go crazy charging everything that your heart desires. Treat your credit card the same way that you would cash. You can't buy more than what is in your bank account. Don't charge more than you can pay off in a month.

4

Don't max out your credit cards. Your credit limit isn't a monthly spending goal. Only charge up to 25 to 50 percent of your credit limit.

5

Diversify your credit. Make sure that you have "revolving accounts," such as credit cards, and "installment accounts," such as an auto loan or a home mortgage. A revolving account is one where you can carry a balance that can roll over from a specified period to specified period. An installment account is one where you make regular payments, in predetermined amounts, over a predetermined length of time.

6

Check your credit report once a year. Make sure that the information on there is accurate. If it is not, then challenge it.