Will lenders really love you for having a good credit report score? Love is not the right word of course; lenders are after your money, and never forget that. But the lender's representative will love dealing with your credit application if your credit report is good. If you have a high credit score and spotless credit record, then when you apply for a large loan, you stand a good chance of not only getting the loan approved, but obtaining a competitive interest rate.
How, then, do you go about building up a good credit report score?
The most important thing you can do when beginning to build a good credit report is to always pay your bills on time and to never, ever borrow more than you can afford to pay back. It sounds simple and obvious, but unfortunately, credit can be very tempting, and if you allow yourself to be seduced by the allure of easy credit, you could quickly find yourself in some difficulty. Credit card debt is often the biggest and most impulsive temptation. However, it is essential for your financial well being, and for building a good credit report, that you set and remember your long term goals. You must resist the instant gratification of easy and expensive credit, such as with a credit card.
These days, if you have a good credit record, as reflected in your credit report, it means more than ever. Your chances of getting a car, a house, or being approved for personal loans or credit cards, has for many years been affected by your credit report. Increasingly, though, the report is being accessed for more reasons. Background checks by employers, for example, may include looking at your credit report, and even insurance companies sometimes consider credit reports when deciding whether or not to extend coverage.
To achieve a good credit record, you must have shown that you have borrowed money and then paid it back in accordance with the terms of a loan, with regard to both times and amounts. It also means that you have shown that you do not over extend yourself on credit. One thing to be careful about, though, is not to apply for a lot of loans or credit cards just to increase your chances of being successful in obtaining credit with one. If you do it too many times, you may look like a high risk.
It is a good idea to start building your credit reputation as a young adult. Whether through cell phone ownership or student credit cards, you can start to convince lenders you are a good credit risk, by paying on time every time, and if possible by more than the minimum.
A next step to building a good credit report score is by taking out a car loan. Cars are generally expensive, so a car loan is a real test of your credit score potential. Paying that loan off on time will have a wonderful affect on your credit reputation and report.
Once you have been using credit for a while, you may find it beneficial to monitor your credit and make sure all is well. Request a copy of your credit report once a year, from each credit bureau. It is important to know which of your credit accounts appear in which reports, and to ensure they are all accurate. It is okay to increase both spending and credit, so long as you do not over extend yourself. If you find mistakes on your credit report, make sure you follow the Bureau's instructions to challenge it, in writing. If you follow these steps, you can get your credit rating up to an AAA status and keep it there.
Roy Thomsitt is the owner and part author of http://www.eliminate-cred it-card-debt-now.com
You got creditors calling you everyday. You could lose the... Read More
Your credit rating affects many areas of your life. Opening... Read More
Credit repair, is in a word, vital to reestablishing your... Read More
A lot of people spend more money than they can... Read More
Anywhere you go online nowadays, you will see a multitude... Read More
In the face of financial hardship, many seeking a responsible... Read More
These five debt negotiation facts along with a few debt... Read More
Most consumers are aware that there are companies that keep... Read More
Identity theft statistics are shocking. And we are told that... Read More
When you are deciding what type of credit card to... Read More
Getting an annual credit report review has been the advice... Read More
If you are one of the millions of people out... Read More
1. Payment History -- 35%The number of accounts paid as... Read More
How Lenders Operate ? And How They'll Make a Tidy... Read More
Negotiable instruments like checks and drafts have become an indispensable... Read More
Reach into your wallet or purse, pull out a card,... Read More
Most of us want a good credit report to obtain... Read More
It's not as hard as you think to raise credit... Read More
Collection agencies are businesses that collect past-due bills and accounts... Read More
Creditors will measure your credit rating based on the following... Read More
In this week's article, I am going to offer some... Read More
As I am not from the US, I had no... Read More
Nearly 20 years ago I worked for a small consumer... Read More
If you have considered credit counseling as an option to... Read More
The process of clearing credit can be laborious and frustrating.... Read More
There is almost nothing more troublesome than having too much... Read More
Credit card debt is a major social problem in some... Read More
Building a good credit history is important. If you have... Read More
How do these people get my name? If you have... Read More
Commercial collections: fixture of the new B2B cultureIf you're in... Read More
Consumers today are up to their eyeballs in debt. And... Read More
It's the number one complaint from consumers and it only... Read More
If you're like most people, you probably own at least... Read More
Several different types of credit cards offer several different options,... Read More
Secured and unsecured debt - what's the difference?It's easy to... Read More
Credit card companies want your business. After all, lending money... Read More
In order to determine a consumer's credit worthiness, creditors and... Read More
Virtually all consumers will have a credit card at some... Read More
Ok, let's face it, everybody hates high credit card rates,... Read More
When credit cards are used wisely they can be very... Read More
There are multiple reasons that tell us why we should... Read More
There will come a day when you need credit. You... Read More
Is identity theft really that serious? Thousands of people every... Read More
Imagine...obtaining credit that's incredibly easy...opening doors of opportunity you never... Read More
If you have never heard of a FICO score before,... Read More
LIVING IN CREDIT CARD UTOPIALet's just take a brief moment... Read More
Chances are you've gotten your share of offers like this... Read More
1. Choosing A new credit cardThere are many reasons for... Read More
Your credit history is an important aspect of your life.... Read More
If you want a cash advance or a payday/paycheck loan,... Read More
"Erase Bad Debt !""Remove Negative Items From Your Credit Report"You've... Read More
As a consumer you've learned the importance of establishing a... Read More
Many of us have seen the advertisements on television. "Get... Read More
Today, selecting the proper credit card can be a bit... Read More
Are Credit Card companies starting to feel the pinch? We... Read More
Have you ever really looked at your credit card and... Read More
The Federal Trade Commission (FTC) has set up a new... Read More
Paying a credit card late fee is the same as... Read More
Spending HabitsSo you've just got your credit card. The first... Read More
Getting an annual credit report review has been the advice... Read More
Keep Your Credit History Clean - Remove A Negative Credit... Read More
Because most of us have one or two credit cards... Read More
You've probably heard the term credit scoring. You may have... Read More
Your credit file may not reflect all your credit accounts.... Read More
Somebody once said, "There is always a way of knowing... Read More
There are seven consumer credit laws you should be aware... Read More
Credit |