Tips for Getting Started on the Road to Excellent Credit


It’s not as hard as you would think to build a good credit score from scratch. In truth, it takes as little as three months to develop a respectable Credit Score and a solid rating by the twelve-month mark. From then on, so long as you continue to use credit responsibly, you can enjoy a perfect score for the rest of your life.

The key is to know how certain actions will affect your rating and to stick to a simple approach that will protect you from going outside of the acceptable range. This is a simple, step-by-step program that will help you build credit even if you have no credit history at all. Also included are warnings on potential traps that, if encountered, would do more harm than good.

First, review your report.

It’s amusing that even if you’re positive you’ve never had credit before, the first thing you should do is check your history. Credit accounts are only one type of information that could be incorrect on your report. Attached to my report was a phone bill in the amount of $500 that I had nothing to do with. In truth, it was attempted at a company where I worked but did not have any financial or managerial responsibility.

Even though it is unusual, you could be shocked to learn that someone else has been passing off their work as yours. This is becoming increasingly common with the development of the internet. Whatever the case may be, having solid information is always helpful.

Stage 2: Challenge the Inaccuracies in Your Report

If after double-checking your report you discover not a single mistake has been made, you may proceed. But if you did notice a discrepancy, you’ll have to fix it before moving further with your project.

Take the time to do this, and push through any aggravation you may feel doing so because mistakes on your record will not only follow you around like a bad luck charm but will also cost you a lot of money. Lenders will base their interest rate decisions on the strength of your credit report.

This can result in thousands of dollars in additional interest being paid over the life of the loan or charge and higher monthly payments. To further aid you in removing unfavorable things from your credit report, we have created an article.

Third, Obtain Credit for Yourself

The next step is to apply for credit after you have checked your report and taken care of any problems you discovered. Getting a credit card will help you do this quickly and easily. Your lack of a solid track record will play a role in determining where you should submit your application.

Start with accounts that are designed to suit a specific need rather than applying for generic credit cards and loans. If your credit score doesn’t yet meet the minimum, applying for a basic card could hurt it unnecessarily. The more times you seek for credit and are denied, the lower your credit score will go.

A gas card, department store card, secured card, or prepaid card is a good starting step toward building credit. These modes of transportation were developed for the sole aim of providing access to finance for people with poor credit or no established credit history. It’s important to note that because the issuer is taking on more risk, the interest rate will be greater.

In today’s thriving economy, you can choose from a variety of high-quality credit cards that are all sure to be authorized. Each transmits information about your financial situation once per month to the credit bureaus. If you pay on time each month, your credit score will increase until you are eligible for a card with ordinary interest rates. Keep in mind that you should actively search out deals, rather than simply reacting to ones that arrive in the mail.

4) Start making purchases with your card

You should use your credit card frequently and pay off the bill in full every month once you get one. When people first get their hands on their first credit card, many of them immediately go out and buy that new stereo system or whatever else they’ve had their eye on.

If you’re trying to establish or improve your credit history, you should never use your new card in place of cash. Instead, you should charge something like petrol or lunch, which you would ordinarily pay for with cash. Instead of spending the money, put it away so you can pay your bill in full as soon as it arrives. If you use your credit card sensibly, your score should improve month after month. A higher credit score improves your chances of being approved for credit and lowers the interest rate you’ll pay on any new cards you apply for.

Fifth, evaluate your progress at least once every three months.

After three months of careful card use, review your credit score. If you have been reliable, you should see a rise in your score. Verify that the correct amounts have been recorded for all of your payments. Now is the time to take action and fix any mistakes you uncover in your portfolio, rather than later when it will be too late. Credit fraud can be spotted in its early stages if you keep an eye on your report on a frequent basis.

Sixth, Push Yourself Even Further

As we have established, once your Credit Score reaches certain levels and you have shown to be a good risk, you will be inundated with multiple pre-approved offers, many of which are not in your best interest and border on predatory lending. If you want to raise your restriction to a level where you feel secure, you should look into doing it on your own.

In addition, they offer a pre-qualifying questionnaire that does not collect any information about the respondent. After submitting the questionnaire, you will be shown a list of all the cards for which you are eligible. Each one can take you to an objective analysis of the card’s perks and drawbacks. An easy online application is waiting for you now. To get the most accurate results from the questionnaire and find out which cards you are eligible for, it is in your best advantage to answer the questions truthfully. You can avoid having credit hits from applying for cards for which you do not yet meet the requirements by doing this.

Bad Car Credit [] has Norris Peterson on staff as a writer.

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