Building strong credit is one of the best ways to prove your financial stability to potential lenders. There are numerous ways to make a good credit score even better, without breaking your bank or causing you excessive worry and stress.
Use credit often and repay quickly
Avoid debit or cash purchases when you are confident that you can pay in credit. Once you run your card and get home, go online and immediately pay off the balance. Think of each purchase and repayment as growing evidence of your credit strength. By building a history of regular purchases and quick repayment to your card issuer, you can raise your credit score and borrowing level while simultaneously lowering your interest rate.
Check your credit score frequently
Avoid errors and forgotten bills by checking your credit at least twice a year. There are many sites that provide this service for free. It can be difficult to dispute fraud or claims of identity theft after more than 18 months from when they occur, which is why staying on top of your credit history can be extremely beneficial.
Get a major credit card
Rewards cards and gas cards can help you build your credit history some, but to raise your scores to 700 or higher, be sure get a major credit card such as Visa, MasterCard, Discover, or American Express. If you cannot qualify for one of these, you can obtain a secured, pre-paid version, which is started by making an initial deposit. These cards can later be converted to traditional credit cards after a certain of stable, regular use has occurred.
Arrange automatic payments for every card or loan
Credit scores take your payment history into consideration when assigning your rate. Paying your bills on time reflects your ability to be consistent and make purchases responsibly. If you schedule automatic payments, you can be sure that you will never forget. Paying more than the minimum monthly requirement at a fixed rate shows credit card companies that you are reliable as well.
Raising the credit score is a long process, but what if you need money right now? The way can be to recourse to the help of the lenders who loan on even with a bad credit history.
