How to build good credit?

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ms.piggy
Posts: 15
Joined: Wed Jun 04, 2008 2:02 pm

How to build good credit?

Postby ms.piggy » Tue Jun 10, 2008 2:56 pm

How to build good credit? What is the fastest way to build good credit? I have bad credit and I desperately need to improve it.

rock
Posts: 20
Joined: Tue Jun 10, 2008 3:06 pm

Re: How to build good credit?

Postby rock » Tue Jun 10, 2008 3:16 pm

There are several factors affecting your credit score. These are the factors ordered by importance:

1. Your payment history
2. Your debt to credit ratio
3. The period you have had a file with the credit bureau
4. The type of credit you have and your new credit

Obviously to affect your credit history positively you need to have a good credit history, and you need to have low debt to credit ratio. The longer you had history with the credit bureau, the better. The easiest way to start building a good credit history is by using 1 or 2 credit cards. Try to get a regular credit card with low credit limit, and if you don't qualify for one because of the bad debt, then apply for secured credit card. Once you have the credit card start using it for daily purchases, but always pay the full balance at the end of the month and never keep the debt to credit ratio over 30%. If you do these 2 things consistently you will be well on your way to improve your credit score.

gonzo13
Posts: 23
Joined: Tue Jun 03, 2008 6:16 pm

Re: How to build good credit?

Postby gonzo13 » Tue Jun 10, 2008 3:59 pm

rock wrote:1. Your payment history
2. Your debt to credit ratio
3. The period you have had a file with the credit bureau
4. The type of credit you have and your new credit


I think rock is right.
You have to pay your bills in full and on time every month; you can use your debit card for purchases, this way you will not overextend and will spend only what you have; when you pay all your debt you will start building good credit but this takes time and discipline.


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