Top main things to maintain a good credit?

Question

I shouldn't be worrying so much about this,I am only 16 years old.

But seeing how the people surround me fail to be successful in life and struggle so much due to bad credit,etc.


What are the main things you think I should know in order to maintain a good credit,perhaps besides paying all your payments on time or should that be the only thing i should be concern of?

I just want to feel prepared,I guess..

Answer 1

You are smart to want to learn these things now. I bet you will do well in life; it is always a good idea to plan ahead.

Top main things to maintain good credit:

1) As you mentioned, make sure all your payments are on time, not only credit cards but your rent, electricity, cable tv, telephone, etc. - all bills on time - always!

2) Do NOT get store credit cards. Only get 2 cards - one should be from a bank, i.e., MasterCard, Visa, etc. The other card should be American Express, which is not a credit card, but a charge card (you have to pay the entire amount when the bill comes in).

The reason for this: if you want to buy an apartment, house or car, they check your credit and look at how much you owe people. If you have a MasterCard with a spending limit of $10,000 and have no purchases on it, they will still write that you owe $10,000. The reason this is done is because you have the potential to owe that much money, so it is counted. Therefore, the more credit cards you have, the more you "owe."

So, that's why you should only have one credit card (from a bank) and not get store cards. That's also why you should make your other card American Express - you can charge your purchases on the card, but without credit - so they don't count that card as what you owe.

3) On your credit card, never max it out - it gives the impression that you are impulsive and not reliable.

4) On your credit card, do not always pay the entire bill (only AMEX, which requires it). Most of the time, pay more than the minimum, but leave money on it to be paid later.

The reason for this is that they like to see you are capable of owing money and paying in monthly installments (like you would have to do if you had a mortgage, for example. This makes you a good candidate. You can pay the entire bill once in a while, especially if you have a lot on it; but for most of the time, pay in monthly installments.

This is about all you need to know to keep a good credit rating Don't minimize it when people tell you repeatedly to make your payments on time. I can't stress enough how important this is. You can have a great credit rating for 10 years, but be late on 2 bills or on one bill twice, and you have just ruined 10 years of good credit. And I do mean ruined it.

However, I don't see you doing that. The fact that you are asking, at age 16, questions like this shows that you are mature and thinking ahead. You also mentioned that you see people around you fail to be successful in life and struggle due to bad credit. This shows an awareness above your age. By learning how to handle things well in life now, you will be prepared when the time comes. Best of luck to you.

Answer 2

Make all your payments ontime, pay more than the minimum payment on your credit cards, and if possible pay off any loans early as long as there is not a penalty for doing so.

Answer 3

always pay before the due date and never give the minimum amount they are asking, for instance if the minimum payment is 20 then double that and if you can pay the amount in full payment then do so doing these things will give you an excellent credit rating and also will increase your limit . never ever pay late!

Answer 4

Step 1. WRITE a budget every month.
Step 2. ALWAYS spend LESS than you earn.
Step 3. NEVER borrow money.
This will actually result in not having a credit score. It will also ensure you never NEED a credit score.

Answer 5

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Answer 6

Don't buy things you don't need. Strive to save money every month. Many people fall further and further into debt every month.

Answer 7

pay on time every time
don't go over limit
use regularly but try not to go over 50% of your limit

Answer 8

always finish what you start no quitting