Credit is clearly one of the more important things in your life. If you have good credit you are going to have the inside track to things like homes and cars. If you have bad credit you are going to be one of those people on those commercials hyping the auto dealer who takes the people who have no credit, bad credit, but get accepted anyway! So what are some good ways to make sure you are building your credit so you don’t end up like that?
The first thing to do is take out a small line of credit as soon as possible. You don’t have to go overboard just something that you can have so that you can get more loans in the future, and start a credit history. Even a 500 dollar line of credit that you use to buy bubble gum and then pay off the balance every month is going to do you wonders. It doesn’t really matter what your limit is as long as you pay the bills, you are going to be OK.
The next thing you want to do to build up your credit score is to pay off your bills on time! This is the easiest way to make sure that you are building up your credit. Paying even one bill thirty days or more late can have some serious consequences for your credit score. The higher your score, the more a late pay can effect your credit, so make sure you are paying your bills if you have a good credit score.
If you are a student, you can take out student loans and start paying your interest as soon as possible. This shows that you are able to make payments, and have made them in the past. This shows to future lenders that you are able to pay your bills and are responsive to your commitments. Remember that student loans don’t ever go away even with a bankruptcy.
Develop a relationship with a lender. If you have had loans with a lender in the past, they will take this into account when you go to get loans in the future. Your credit score means a lot but it doesn’t mean everything. People will use discretion and if you are a good risk despite a few bumps in the road it can mean the difference between getting a loan and not getting a loan.
There are many good ways to develop some sort of good credit reputation. Develop good relationships, take out a line of credit, and pay your bills on time! This will ensure that you have a good credit history, and good credit throughout your lifetime. This makes all the difference in the world when it comes to improving your life.