Tips for Building Credit

There is almost nothing more important to a healthy financial life than a good credit score. Lenders use credit scores and credit reports as their primary source of determining the riskiness of a borrower. This means that interest rates as well as loan amounts are dependent on having a clean credit history. Insurance companies also use credit scores to help determine deductibles.

It is very important to build your credit. Whether you are 18 years old or 58 years old it can always help to raise your score. There are many ways to build your credit, which will save you money and make your life less stressful as well as make you more wealthy.

For young adults, it is very important to establish credit. If possible, have your parents cosign a credit card as soon as you turn 18. With new credit card laws in place, it is very difficult for anybody under the age of 21 to be approved for a credit card without an older person with good credit as a co borrower. Even if you are only approved for small limit, it is important to have this open line of credit at a young age. It will make the world of a difference in the long run.

Don’t close your oldest line of credit. One thing that people often do not realize is that credit scores are in part determined by how long you have been a borrower. If you close your oldest credit card, you lose all of those years in your credit history.

Pay on time! Late payments as well as going over your limit are killers for your credit score. Make sure you are paying on time!

A big tip for improving your credit score is to always pay more than your minimum payment due. It makes it look like you are not just ‘getting by’ and this makes you less risky to lenders. Even if it is just a few dollars more than the minimum, it will help your score improve.

Another tip is to pay down your credit card balances. It is easier said than done, but another factor for determining your credit score is to have a low ‘debt to available limit’ ratio. You can increase this ratio by having less debt, and you can also improve this ratio by increasing your available limit by opening another card or increasing a current card’s limit.

The best way to improve your credit is to make your payments on time. Delinquent accounts are killer. Check your score online. Getting your report and score is the 1st step to boosting your credit, and make sure you are not delinquent. It will save you thousands in the long run!! good luck!

The first step in taking command of your credit and your life is to find out where you stand. How’s your credit score? 0-600 Poor, 601-680 Fair, 700-774 Good, 775+ Excellent. Find out your score now! There are no excuses since you can get a Free Credit Score!

See your Credit Score for $0 at CreditReportViewer.com. It’s Free and available in seconds.