How to Build Your Credit

Your credit history will say a lot about you. It is a useful tool that you should never take for granted. A good credit score can bring you a long way in terms of investments, other money matters, and more importantly, some career decisions. Yes, that’s how significant a good credit is. It can help you get the best deals on mortgage, car loans, employment, insurance rates, and even postpaid cell phone plans.

How to build your credit? There are a few things to consider, a few things to do. This could be achieved through the help of a professional but can also be done by yourself, the DIY way. Here’s a quick guide to help you through the process:

Step 1: Take a peek at your current credit report. You need to know what lenders are saying about you so you would know where to start in building a pleasing credit score. What if you have never had a credit, would you still have a credit report? Yes. Sometimes, people who may have similar information as yours could be mixed with your own credit report. So even if you’ve never had a credit, you may have a record at the three major credit bureaus namely Equifax, Trans Union, and Experian.

Step 2: In case there is a bogus account that could be mistaken by insurers, lenders, employers, and landlords, as yours, you must clean it up. Cleaning up your credit report is easy because there is a helpful guideline that you can find online, at the Federal Trade Commission’s website.

Step 3: One of the easiest ways to build your credit is opening a bank account. A savings or checking account will do. What’s important is that you have one because lenders, insurers, landlords, and employers usually consider a bank account as a sign of financial stability.

Step 4: To have a good credit score, you must never take your bills for granted. You must also learn to spend within your limits. Undoubtedly, those two things will help you build a good credit fast and easy.

Step 5: If you have no way to improve your credit within yourself, using your own powers, you could borrow someone else’s good record to help improve your own. How would you do that? Ask that someone, may it be a friend or colleague to co-sign with you on a loan that otherwise might not be approved. If you pay for that loan responsibly, it could help you loads in giving your credit score its much needed boost.

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