Getting a good credit score is important, even if you don’t have a credit card or don’t want one. Building good credit can contribute towards lots of things. You may need a loan for something one day, and when it comes to job-searching, some companies will check your credit score before hiring you. If you would like to get a good credit score, but aren’t sure where to start, keep on reading! This article will give you all the pointers you need to get started on getting good credit scores.
1. Take out a Small Loan
If you are just starting to build your credit score, you need something to go off of. Take out a small loan; one thousand is a good place to start. Pay it back in less than the required time. This will really help you to get a good credit score! Depending on your location and age, you may need someone to co-sign for you.
2. Only Have One Credit Card
If I may caution you on one thing as you are trying to get good credit scores, it would be to avoid having more than one credit card. Applying for more than one card will tell financial institutions that you are trying to create more debt. This might raise your risk as a borrower, and lower your credit score. Besides, you don’t need the extra temptation to buy more things you don’t need and split them between credit cards.
3. Charge What You Can Afford
Pay attention to what you are charging each month on your credit card. You want to get a good credit score, so don’t build debt up over your head. Charge only what you know you can afford. By making moderate payments, you can pay off your debt faster instead of being over your head for months at a time.
4. Pay Your Credit Card in Full
The worst thing you can do for your credit score is to fall behind on payments or miss them. You want to get good credit scores, so make sure this doesn’t happen to you! Pay it off in full right away if you can, or at least make sure you pay more than the minimum requirement. You want your financial institution to know that you are serious and reliable. At worst, they could deny you your card and cut it off.
5. Don’t Max out
Be careful of maxing out your credit card. If you hit your limit, or go over it, your credit score could drop below 30 points in one month! If that does happen, try to get your balance to at least below 10 percent as quickly as possible to restore your score. The best advice though, would be to avoid maxing out altogether. Don’t jeopardize your chance of getting good credit scores!
6. Carry Your Balance Correctly
There may be times when you do have to put a little more than you intended on your credit card, or don’t have the money to make large payments on it. If this happens, don’t despair! You can still get a good credit score. You just need to carry your balance correctly. Here’s how: Pay as much as you can afford on the monthly payment, and try your very best to make it at least 15 percent more than the minimum payment. Stay on time with your payments, and don’t max out your card.
7. Piggyback Your Way in
Here’s one great tip for getting a good credit score. You can piggyback your way in sometimes! Maybe you don’t have good credit scores, but your spouse does. Have him or her call their financial institutions and have you added onto their accounts! Their credit scores won’t be yours entirely, but this will help to add to your credit scores until you can build your own up.
Knowing that you have so many options for improving your credit score or building a good credit score from the ground up should set your mind at ease! The very best way you can get a good credit score is to be responsible with your payments. Be on time, and pay more than the minimum. This shows that you are reliable and trustworthy and will help you to get a good credit score. Do you have any tips to offer for getting good credit scores?
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