Credit. Everyone needs it, not everyone wants it, and when you need it most, it is hardest to come by. Building a positive credit rating takes time and careful management, and cannot be done overnight. There are several ways to build it, and depending on what stage you are in of your life or career, it can be easier or more difficult to do.
Building Credit
The first step towards building a positive credit rating is to get some credit. For most individuals, that first piece of credit is going to be a credit card. Credit cards are a relatively easy product to attain, even for individuals with no history whatsoever. Most companies are eager to target new customers and will have exception programs designed to approve post-secondary students with little more than some identification and proof of enrollment. This is a great way for a younger individual to get started, as it will allow them to avoid being declined due to a casual employment status or a lack of income.
Generating Positive Credit History
The next step is actually building a positive credit history. This is done by utilizing your credit and paying it off on time. Missing payments can damage your credit score, as well as lead to your credit card provider increasing your interest rates. To ensure this doesn’t happen, set up a pre-authorized minimum payment on your card. That way, even if you forget, the payment will automatically be drawn when due and the reflection on your rating will be positive.
Another thing to be careful of is over-utilization. This occurs when your balance owed is close to the limit on the card, and is maintained there for a long period of time with little progress made towards paying it down. This will slowly begin to reflect in a negative manner on your credit report, and will eventually drag your rating down. The moral is to pay down balances owed on a regular basis.
Grow Your Credit Rating
Finally, the last thing you’ll need to grow your credit rating is time. Rome wasn’t built in a day, and a high credit score can’t be either. A long history of careful management is the most foolproof way to ensure you grow and maintain a good score. It will allow for your regular and on time payment history to push any missed payments or other blips into the past, and will show creditors that you can be trusted to pay back any funds you borrow.
If you’re planning on buying a house, booking a flight, or even making most purchases online, you’re going to need credit. Having a good rating can be attained by being responsible and ensuring you are making your payments on time, and making sure you are not maintaining a long-term balance close to your limit.
Final Thoughts
Good credit takes time. With your credit rating, there is no quick solution as it is based on your history. Use it in a responsible manner, and you will be able to attain, maintain, and reap the benefits of an excellent rating.
I have credit cards and medical like hearing adds. I don’t have my own place because I can’t afford a place I live with my son and his family. I am really wanting my own place so I need to pay off my bills can you help me
I had perfect credit until one morning when I was crossing a street and hit by a car. The LAPD left my Fannie pack at the scene of the accident but in that litt pack was my life story. My late wife and I had 1 Credit card that we would use to maintain a good score. It had a $30,000. límit but we seldom used more than $1,000 and would pay it by the next billing date. Anyway, it had a Federal I.D card for the Department of State, Department of Justice, NSA and CIA. I am an Attorney and was Private Counsel to these Agencies. The strip on the back of these cards had everything about me. All that information was used to take my Identity. They even removed all important information from the Social Security Administration. I have a letter to this affect from the DOJ and 1 from UCLA about my information being stolen. I had a long term relationship with UCLA going back to 1956 when I had my tonsils removed. They had all important information about me. I have a copy of those letters and would be more than happy to give copies to potential lenders. In that hit and run I was involved I was hurt very bad and am mostly metal on my right side from the pelvis to my ankle and developed Reflex Sympathetic Dystrophy that has spread to include both legs, spine, up to the base of my head. It’s called full-body CRPS/RSDS. I need that for a new treatment and for a home office for my work as an Attorney but writing opinions on cases from the Agencies I used to work for and other Law firms as well.
Thank you very much. I didn’t need credit until I needed credit.
Sincerely,
Pierce Bishop, PhD
I need because rv burned down lost everything
I made a big mistake. I was trying to build me some credit. I open several cards out, because I thought by showing I could pay my monthly note on time it would help show that I was responsible for that note. I did not know by over charging on them would do the opposite and it hurt me. Then I had a emergency hit me and as of now I am behind on 2 of my cards. I have tried to consolidate them into one note, but no look at getting a loan. What can I do to keep my credit from dropping more? I’m trying to raise it and not damage it more.
Hi I’m Linda I been trying to get a. Car and money to do I can relocate. I live in my car last September to May I i relocated to live with my boyfriend and car and extra money I could use to right move