Having credit comes with the responsibility of making sure that it’s maintained well. You can do this by ensuring that you pay your bills on time and that you don’t skip any payments.
If you haven’t previously had credit, you need to take a few steps towards building a strong credit record.
- If you’re looking to establish a credit record, the first step you need to take is to get a credit card or open a store account. You should use this account or credit card sparingly so as to avoid over-indebting yourself.
- Make 100% of your payments on time. One of the easiest ways of establishing a god credit record is by paying on time. This shows creditors that you are a reliable consumer.
- Keep your credit utilization low- this is your balance when compared to your limit. Having too much credit can have a negative impact on your credit score.
- Close any accounts that you don’t need or use. If you keep accounts that you don’t need you’ll keep paying high interest even when you don’t need to.
- Never take on credit you can’t afford. Only sign up for a credit card or account when you are sure that you can afford it.
- Pay your accounts in full.
- Get your yearly free credit report. This way, you know what your score is, so you can improve it if you need to.
- As a responsible borrower, only borrow what you can afford. This also helps you avoid excessive debt.
- Avoid maxing out your credit cards.
- Start with only one credit card. You should avoid opening up too many credit cards at the same time.
- Keep in mind that the longer you’ve had credit, the better it is for your credit score.
- Having different kinds of debt can be a good for building a strong credit record.
- Use credit in the right way.
- Keep balances low.