6 Ideas for Building a Good Credit Score

A good credit score is ESSENTIAL in today’s world.  Having a good credit score doesn’t just mean that you will get a low rate on loans and credit cards.  But these days, employers will do a credit check before hiring you!   Up for a management position?  Some companies will pull your credit before offering you a position of authority.  And just because you have some past credit mistakes, they may pass over you for promotion.

img-3Having good credit is also less  stressful,   With a good credit score, you know that when you apply for any kind of financing you will be approved.  While someone with bad credit has to agonize over approval.  They may have to provide a lot more documentation and even write letters explaining the very personal and private reasons they have bad credit.  And even after going the extra mile, if they get approved for the loan or credit card.  They will be forced to pay a higher interest rate, and maybe even put down a security deposit.

How to Build a Good Credit Score

Thankfully a good credit score can be built even after you have had past credit mistakes.  Here are 6 tips to help you get back on your feet and start building a more positive credit profile.

credit report

  1. Order your credit reports on a regular basis. It is important that you order copies of your credit report
    at least every six months. This way, you can have the chance to examine your credit file and look for inaccuracies that are being reported. Keep in mind you need to pull a credit report from all 3 credit reporting agencies.  Your credit score can differ greatly depending on the credit bureau its from.   You are entitled to 1 free credit report from each agency from annualcreditreport.com  BUT that report WILL NOT include your credit score.With identity theft on the rise.  Many people are now purchasing credit monitoring services or putting a credit freeze on their credit report.  Even if you have bad credit you should be monitoring your credit for potential I.D. thefts.   Scam artist can still use your credit to obtain financing and / or use it to obtain employment.  So having a low credit score WILL NOT protect you from identity theft.
  2. dispute errorsDispute errors in your credit reports.  Nothing is quite as frustrating as being denied for a loan because they have you confused with someone else, or one of your loans or credit cards is being reported incorrectly.The right time to find errors and take care of them is BEFORE you sit in front of a loan officer. For information on how to write a good credit dispute letter, click here.
  3. Pay your your bills on time. Responsible credit habits involve paying your financial obligations on time.  If you can pay them off in full each month, even better!   This is a very important step if you intend to maintain a high credit score.
  4. Do not max out your credit cards. As much as possible, just use a third of your available credit limit.   The amount of credit you have and are using each month will have a big effect on your credit score.
  5. Avoid closing your oldest accounts. If you intend to close one of your credit how to build a good creditcards so you can manage your personal finances more responsibly, make sure that you choose your newest accounts first. Never close your oldest credit cards if you can help it.  The length of time you have had credit is also a factor in your credit score.
  6. Don’t forget to build new credit. A lot of people with a low credit score will wait until all the negative items drop from their credit report before they start to look for credit.  That isn’t the way to go about recovering from bad credit.  You want to apply for new lines of credit.  There are plenty of finance companies that offer financing to people with bad credit.

List of companies that will provide bad credit credit cards

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smart ways to build good credit score

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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