Building your credit score is a lot harder than maintaining one, which is why it’s so important for consumers to keep their finances in order. The more organized you are, the less likely you are to fall behind on bills. Once you start this downhill trend, you will find yourself in debt and with an unsatisfactory credit rating. If this is the state your report is currently in, then it’s time to start rebuilding. You can also use the following tips if you’re trying to build up your credit for the first time.
Continue Paying Your Bills On Time
The last thing you need is for new collection accounts to be opened on your report. This will put a hit on your score, dragging it down further. Do all you can to stay up-to-date with all the bills you currently have. This goes for everything from your energy bill to your phone bill with T-Mobile.
Pay Off Your Credit Cards
It’s better to pay off your credit cards in full, rather than allowing the interest to accumulate each month. Not only does this look good to a creditor, but it also helps to boost your credit rating. All payments you make on your credit cards are shown on your report, which makes them key to building up your credit score.
Stay Away from Your Credit Limit
Maxing out your credit cards is not the way to go. Your credit limit is determined by how much credit you have on your account and how much you’re using. Having too much revolving credit doesn’t look good on your credit report, which can cause you to get turned down for loans and even apartments.
Following these simple tips have helped other consumers raise their credit scores by as much as 100 points. Of course, the lower your score, the easier it will be to raise it up by that level. It takes careful financial planning and plenty of diligence to stay on top of your credit. If you’re committed to approving your credit, then you will raise it to a satisfactory rating in no time.