How to Build Good Credit

April 11, 2012 by  Filed under: Credit 

For those people who need expertise on how to get credit you have found the right article. Getting in good standings may be hard, losing good credit is easy. If you miss a payment you lose credit. Your score will go down. Building credit is tough, but can be accomplished. Paying your bills on time, keeping debt balances down, and don’t have so many different credit cards will help your credit build. Having good credit is key for a successful lifestyle. It is used for many things. You can buy a home, finance a car or truck, get credit cards, have a responsible credit line, and get needed loans.

Paying your bills on time is key for great credit. You must pay at least your minimum balance by the time it is due. Not a day late! If it is late you will suffer with credit loss. One missed payment is equal to about 12 good payments in terms of standings. Paying your bills can lead to a good relationship with the carrier and possibly lead to an higher limit and better interest on your balance. Paying your bills (mostly card providers or loans) is key for success in having good credit. Know your score and shoot to make it better. It will not get better if you are late on a payment.

Keeping card balances down is another great way to build credit. If your available balance is higher than the amount you owe, you will have better credit than if you owe more than your available balance. Keep your credit card balance down by paying your bill on time. This does not mean apply for many credit cards to try and get more available balance. The more cards you have the worse. Having a few is the best way for success in good credit. The best way to keep your credit card balance down is by paying at least double your minimum balance (assuming you have an outstanding balance).

Do not have so many credit cards! If you keep applying for credit cards and you keep racking them up, you will thus lose credit. If you open a new account and cancel it within 12 months, that also cuts your credit down. Do not do this. If you open an account it is best to keep it open for at least a year from the time you opened your account. Then cancel it.

In conclusion, paying your bills on time, keeping credit card balances down, and not having so many credit cards will ultimately boost your credit score. Think positive. Never do anything that can hurt your credit because in this era, having bad credit will be harmful to your success in the future. You will struggle in life and not be able to get an apartment, house, car, truck, boat, credit cards, credit lines, etc. Always remember it is much easier to slide down the credit score slide and much harder to climb back up. With this being said. Spend responsibly.

Please check out http://www.payoffcredit.org for free articles and information on debt relief, debt management, and debt consolidation. We specialize in giving free information and we also have fresh knew news on debt information along with original articles.

Article Source:
http://EzineArticles.com/?expert=Andrew_Almeida

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