Aug25
How to Build an Impressive Credit Score
Why is it that some people have fantastic credit scores, but you just can’t seem to get yours over 650? Although there are no secrets to an impressive credit score, there are a number of things some savvy consumers know to do to ensure their credit score is near the top.
Here’s what you need to do if you want to build a strong credit score:
- Begin building a credit history as early as possible. In other words, don’t wait until you’ve graduated from college to begin worrying about your credit score. Instead, when you turn 18 and are gainfully employed, begin by establishing your credit with a secured credit card or a retail credit card. Make paying those credit cards every month an absolute priority and never, ever miss a payment. Keep your debt to a minimum and you can expect your credit score to begin taking shape rather quickly.
- Pay for purchases with plastic. The only way to really build a strong credit score is to show the credit reporting agencies that you can manage your credit well. And to do that, you need to charge and charge often. Since you are going to be charging purchases, consider a rewards credit card that will pay you back in the form of cash or points for making purchases you would have made anyway. However, it is vital to make paying those cards off each month a priority so you don’t begin to accumulate debt.
- Be careful about having too much credit. Although the only way to begin building a strong credit history is to start spending on credit cards, applying for too many credit cards at one time may raise a red flag with the credit reporting agencies that you are not acting responsibly in terms of your finances. Therefore, keep the cards to a minimum.
- Monitor your credit score on a regular basis. A strong credit score is often dependent upon the accuracy of the information contained in it. Therefore, in order to ensure you are maintaining a strong credit score, it is best to order a copy of your credit report at least once a year to check for any errors or discrepancies.
