You need to focus on building positive credit as soon as you can. After all, it is crucial for overall financial health and early mistakes can cost you gravely in the long run.
How to build up your credit rating
Allowing yourself to have a secure credit future means that you must start out with a good track record of handling credit which can only come by improving your current credit situation. Here are some tips on how you can build up your credit rating:
• Earn a good reputation with your lenders: Every bank would like to see that the person they are loaning the money too is capable enough of handling credit. A stable record speaks volumes of how one can handle credit. If you have bas credit, start out with a secured credit card if you are in your teens that would help you understand how the whole financial cycle works.
• Skip mortgage payment: The biggest sin that one could commit in the eyes of the bank would be to skip a due mortgage payment. This is considered to be even worse than missing loan repayment. If your current situation isn’t so good on the financial front, get in contact with your dealer as soon as you can. They would most likely extend the payment term or have you move over to deal only with interest confined loans.
• If you have an outdated credit card, cancel it out now: If you aren’t making the most of your old credit card, best is to get it cancelled. Credit lines do show on your credit file and seeing the debt can strike fear in the lender’s mind that you have and will continue to struggle with repayments.
• Make sure that all your details are true: Dropping inaccurate information will only reflect poorly and no financial institute will have faith in you. Applications must speak the truth about you. This could in turn have an adverse effect on your current credit rating.
These tips and tricks will help build up your credit rating.
1) Ensure that your lending institution has a good reputation of you.
2) Never, ever fail to miss out on one of your mortgage payments. Talk to your dealer if you are in a tight spot.
3) If an old credit card exists to your name and you don’t really use it, get it cancelled if you aren’t using it.