If you are like most people, you have been hearing about the importance of a good credit report since you were able to hold a dollar inyour hands. One of the best things that you can do for yourself is to keep a good watch on everything that has to do with your credit.
The better your credit is, the better the chance you have to get good rates on loans, credit cards and so forth. There are several steps thatyou should take in order to go through the process of building a good credit report that you can be proud of.
As long as you pay attention to all of your accounts as well as all of your expenses, it should be fairly easy for you to build a good credit report. One major rule of thumb is to make certain that you pay all of your bills right away when they are due. Even if you cannot pay your balance, it is completely necessary that you at least pay the minimum so that you can show creditors that you are a responsible individual.Late and missed payments will reflect poorly on your credit report, leaving you with a less than desirable credit score. 5 Quick Steps That Can Improve Your Credit Score By 18 Points In One Day!
1. Check with your bank and see if they give you bill pay servie. If so then start using it. Set up all your credit accounts so that all payments are made on time. I set mine for the avg minimum pmt on that particular card. If I could pay more I would, but at least I knewthat my payment was made on time.
2. At your earliest convenience, it is in your best interest to obtain a copy of your current credit report. This way, you will be able to see which of your accounts are actually listed on your credit report. You can get your credit report for free through several different websites online at least once per year.
3. Check for errors – go through and double check all of your information so that you can be absolutely certain that there are no errors on your credit report. The reason behind these check are because errors can be quite devastating to your credit score.
4. If you do happen to find an error or two on your credit report, it should be resolved as soon as you possibly can. You can go about fixing the errors by contacting your lender to find out if they have the information correct. Then, you will be able to find contact information through your free credit report website so that you can get the errors deleted from your credit report.
5.Check your credit limits. Are you over extended? Is more than 50% of your available credit limits in use? A quick way to increase your credit score is to bring down your debt ratio. I had a client that surprised me by calling her credit card company and requesting a credit line increase. Here orignal credit line was $4000 with $2500 in use. They increased her line to $7500 which put her at 33% of her available credit in use. The next month her credit score rose 18 points.
Remember that credit is a privilege, not a right. You should always do your best to take care of the credit that you are given and you will be sure to build a good credit report.
