Your credit rating is past on your ability to pay any debts you have under your name. The better your score, the more likely lenders are to assist you with credit in the future.
Help To Build Credit —- A Good Credit Score
It ranges from 300-850. Higher number is an indication for better credit score and less risky for any payment.
Steps to build a good credit score—
• Deleting Errors in a short time is the fastest way to correct errors on the credit report. This can be done through a bank or a mortgage company… The credit will improve to a certain extent and allow loan at lower interest.
• Piggyback Someone’s Credit is a great credit score booster. This is done by putting someone else’s adds to one’s account. This can be done only when there is trust in the person whose account is added. It is difficult to find a trusty person. But the trusted person could add the other person as a cardholder and not give the facility to operate his accounts.
• Playing Round Robin is one of the oldest strategies for credit building. This done by secured saving account or by secure credit cards. The new checking account is used to make payments on the new credit cards regularly on time.
• Pay on Time will increase the credit score. Credit companies make lots of money when loans are not paid in time, but the credit goes down.
• Pay down Debts is a method that is not transparent. Paying off debt is different from managing the debt. Payment should be made only of the amount that will improve the credit profile.
• Never close accounts because the longer an account is open with no negative reports, as it reflects a better credit score.
• No New Credit should be taken if the credit score needs to be increased. Each credit will call for an inquiry that is added in the report. This naturally drops the credit score. A fresh credit card will be helpful if credit is to be taken because there is no the new credit card. Possess 3-5 credit cards for different purposes to obtain personal credit. Credit limit can also be asked on current cards.
• Bankruptcy or Foreclosure should not be filed. These remain on the record for several years and always decrease the credit score. It is legally possible to delete a bankruptcy and foreclosure by advanced methods.
Advice to youngsters
• Invest some time and money to gain financial management.
• Learn to save for security cards when other sources fail.
• Pay all debt and bills in time.