Want good credit?
Check out a few habits of people with good credit.
Make monthly payments ON TIME. Even one late payment can lower your credit score.
Open a credit card or share secured credit card, and use it to make small purchases that you can keep up with.
Make regular payments on your credit card, don't let it build up until the end of the month.
Don't use your credit card to its maximum spending limit. Stay within 30% of your credit limit.
Be responsible with your payments and your money.
Don't run your credit report unless you need to. Checking your credit report often tells lenders that you are looking to take out a loan or make a purchase, so your credit score drops a little each time.
Good credit can increase your chances of getting approved for a loan. But what is credit, and how do you get it?
Good credit comes from responsible money management, like making payments on time, or using a credit card responsibly. For example, paying student loans on time can help you to build credit. If you are starting from the bottom up, try a share secured credit card or a credit card to get started in building good credit!
What else can good credit do for you?
In addition to helping you get approved for loans, good credit can save you money. For example, if you borrow money from your financial institution for a car loan, and you have a good credit score, the interest rate will be lower than someone with a poor negative score. So, with a good credit score, you end up paying less money for the same car as someone with a poor credit score!
Good credit pays off! Take care,