What is the best way to get good credit?

Answer 1

Charge things when you know you can pay it off immediatly. Pay as soon as you get the bill and make sure you have the money to cover it in your account.

Answer 2

As I improved my credit score, I notice that accounts that carry a high balance (i.e. maxed or close to maxed) and having too many open accounts really stumped my score. Inquiries have minimal impact on your credit scores. Having excessive amounts of inquires will slightly lower your credit score, however it is not weighted the same as a delinquent payment or a higher balance.

I recommend keeping a balance of no more than 20-25% of your credit limit. Most will say 30%, but at 20-25% you have the extra 5-10% as a cushion for purchases and finance charges.

Credit inquiries take a little more than two-years for removal. I say a little more because if the inquire was on 12/2/2004, the removal will post on January.

Non-credit bills (i.e. rent, utilities, and cable) do not really help your credit score as they maintain it. In other words, paying your non-credit bills does not raise your credit score, but delinquent payments will lower it.

Watch out transferring balances to another card. Read the fine print because sometimes it is at a higher rate plus additional fees. Some cards consider balance transfers as cash advances, which means higher interest and advance fees.

Request a copy of your credit report and check for inaccuracies. Those inaccuracies can lower your score. My credit score went from a 685 to a 692 after correcting some inaccuracies (credit inquires that were not removed after two years and an open account that I paid/closed). You are entitled to a free credit report per year that has information from all three credit agencies. However, that report does not disclose your credit score. You will need to purchase your credit report through a broker or bank to see your score.

Credit does not build quickly. Most think they will build up a 700 score with a car loan and a few credit cards. You have to consider how much history you established and your financial behavior with those accounts.

Patience and good financial behavior is the key.

Answer 3

Getting a credit card is usually a good way to get started. But I would suggest one with a very low balance, like $500.00. That way there is always a way to pay it off if it gets out of hand. I also agree that only by paying it off right away will your credit benefit. If you can, get one with the lowest possible interest rate and no yearly fee.

Answer 4

Get a loan or credit card. I suggest starting small. Pay payments on time,(for credit card payments pay extra on the payments) nad your credit should build right up. Just be sure not to make any late payments. Good Luck!

Answer 5

Try to never be late on credit cards bill and your mortgage. Check your credit report every year and FICO score. Thry to get credit card with 10 percent or less. I have a few. Balance transfers are good if you to switch to a real low or zero percent. If you have BK, it takes 7 to 10 years to come off the credit report. LASTLY, INDENITY THEFT IS ON THE RISE.

Answer 6

Don't open too many credit card accounts, but use the ones you do have wisely and always make your payments on time.

Answer 7

Pay your bills on time, and live within your means

Answer 8

Charge often and pay it off immediately!

Answer 9

don't 'get' bad credit

Answer 10

Pay on time,ALWAYS!.No excuses.