How to Build and Maintain a Good Credit

Maintaining a good credit score is very important in the US. Almost every thing you want to do require good credit: loans with buying property and car, to apply for a good credit card, to open a cellular account with no deposit, government jobs that require background and credit check and etc. Hence, maintain good credit is very critical and here are ways to help.


Step 1
Check all three of your credit reports and FICO score annually

It's a good habit to request your credit report annually from each of the credit bureaus: equifax, experian, and transunion. Please review your credit reports carefully to spot any errors.

Step 2
Only spend what you can afford on credit card

It's not good habit for you to just pay the minimum payment required frequently. Usually the minimum payment that credit card company ask for is approximately the same amount as the interest charged to your card. Please keep in mind that the money you owed would grow very fast because they charged interest on a daily basis.

Moreover, try not to go over your credit limit. If you do, it will negatively impact your credit score.

Step 3
Do not get cash advances

Please don't use the cash advance check for other investment or use it live off your credit cards and etc. If you are that stage, the chances are high that you will not able to pay it back. Hence, this will get you into more serious trouble financially.

Step 4
Pay all your bills on time

Do not ever make a late payment or skip a payment. If you do, it will lower your score tremendously. And this late payment or no payment record would hurt you badly when you try to apply for a loan.

Step 5
Establish your credit history early

If you are a student or haven't build up your credit yet. You can still apply for Alumni credit card to start with or credit card that require no or bad credit.

Buy some electronic like HDTV, Dell computer, refrigerator, etc. and pay them with installment method. This is a good way to build up your credit, just make sure to pay it on time.

Step 6

Practice good money management skill. Control your monthly spending and control your risk on all your investment.


Resources

Equifax - Score Watch
Equifax - Score Power
myFICO
CreditReport.com
SmartCredit.com
TrustedID - Identity Theft Protection