How to Have Good Credit

They say Rome wasn’t built in a day, well the same is true here. Improving your credit score is a process that takes time and commitment to responsibility. With a bit of research and diligence, you can take these tips to improve your score potentially.

Pay Your Bills

If you are self-sufficient and financially independent, you are bound to have bills of all sorts. Utility bills, cable bills, social obligations, everything is due at a certain time. The companies to which you owe money are expecting the full amount on the agreed-upon date.

Every month or quarter, when your bills come in the mail or online, pay them in full and on time. Just by doing what you are supposed to do, you are building up your credit, and your score could begin to rise. Because all of your personal information is attached to those bills, you will begin to demonstrate your responsibility to loan companies.

If you have trouble remembering to pay bills on time, then set reminders on your phone or write a note to yourself that says the amount due and date by which they must receive it. Many companies offer online bill-paying services in which you can set up automatic payments. Just be sure that there is enough money in your account to pay for a bill when they debit your account for automatic payment.

Maintain Employment

If you have consistent employment with a regular salary, you should be able to afford your bills as well as other things. Credit card companies can be selective when they accept applicants for certain cards. Most of their reason for being so picky has to do with your yearly income level. If the company doesn’t feel that you make a sufficient amount of money for you to use their card and have it benefit them, then they may decline you.

Keeping a job will demonstrate that you have a consistent income, and you can borrow money from a financial institution then pay it back.

Apply for Cards

One of the only ways that you can even put yourself on the credit “map” is if you use some form of credit regularly. Apply for a credit card once every six months, and only keep a select few at a time. If you begin to borrow for your everyday purchases and show that you can handle maintaining several at a time, your credit score may improve.

Make sure that as you are using these cards, you are paying off the entire balance in full every month, and when you pay them every month, it is on time. Those are two of the worst mistakes that consumers make when it comes to using charge cards. These mistakes can destroy a credit score and make you subject to higher interest rates and fees.

Maintain Checking and Savings Accounts

In addition to using charge cards, you should open and maintain a checking and savings account to demonstrate your financial worthiness as well as responsibility. However, make sure that you aren’t opening many accounts at once; this could look like manipulation. Just have a few solid accounts and keep money in all of them.

Discovering how to have good credit can be your key to making significant lifestyle changes in your future. Whether you want to buy a house, car, or make an investment at some point in your life, you will most likely need to borrow the money for it. Having good credit enables you to do all these things, and with the tips and tricks provided here, you may see improvement in your score.