The road to good credit
The road to good credit can be filled with obstacles. Below are some tips to get you there quicker, and with a few less bumps!
A solid credit score is just around the corner...
- Only borrow what you can afford and don’t try to keep up with the Joneses. It’s wisest to start with only one credit card.
- Pay your credit card(s) off in full every month. If you make a larger necessary purchase like a computer for school, and must pay it off over time, pay as much as possible monthly. Interest can add up in no time.
- Only utilize 30% of your credit limit at a time, and at the max 50%.
- And of course, make all of your payments on-time. This is the largest component of your credit score (35%).
- Leave your oldest credit account open. Length of credit history accounts for 15% of your credit score.
Already hit some bumps?
- Request your credit report annually
- Catch up on missed and late payments
- Going forward pay on time!
- Pay credit card debt down as soon as possible (Remember: Installment debt, like home and car loans, is looked on more favorably.)
- Avoid closing oldest credit cards
- Avoid applying for excess amounts of credit
- Shop for loans in a short period of time
- Options for if you are in over your head
- Payment Plan with creditor
- Non-Profit credit counseling
Learn more
Money Facts
