Thu. May 6th, 2021

We all know that in American society, having good credit is used for more than just getting a credit card or a loan. Credit scores demonstrate your history of paying your debts to entities that loan you money. For this reason, we’ve compiled an important list to ensure that you get the best possible credit score you can.

  • Pay all credit card payments on time.
    • The most important thing you can do to achieve stellar credit is to pay your bills on time, every time, and to pay at least the minimum required amount.
    • Payment history makes up a whopping 35 percent of FICO scores.
  • Download Credit Karma and Experian on your smart phone to view your credit.
  • Get full credit report and see list of any accounts that have gone delinquent and/or into collections.
    • Taking a periodic peek at what others say about you on your credit reports is financially important!
  • Dispute all delinquent/collection accounts.
  • If you don’t already, obtain credit card (Ex: Capital One, Credit One, Indigo), and utilize less than 30% each month (use only for small purchases.)
    • Showing that you can use credit responsibly helps establish your credit and payment history.
    • Credit Karma will give you a list of what credit cards you are eligible for, based on your credit.
  • Reduce balances on your revolving credit accounts.
    • One of the fastest ways to improve your credit is to decrease your credit-used-to-credit-available ratio (or credit utilization ratio). This means paying down the balances that you carry over from the previous month.
  • Don’t carry a balance.
    • One of the biggest myths about credit is that you need to carry a balance month to month in order to build a history. Not so. In fact, credit scores don’t even distinguish between those who carry a balance and those who don’t, according to Consumer Credit Counseling Services.
  • Open a savings and checking account.
    • Although they aren’t considered “credit,” these accounts may show up on your credit report. Lenders view savings and checking accounts as signs of stability.
  • Don’t open too many new accounts at once.
    • When it comes to building your credit, patience is a virtue. It takes time to create a solid record of consistency in making payments to demonstrate your creditworthiness. Start off slowly with one or two accounts. Use them responsibly for at least six months to one year before applying for another, if you need it.
  • If needed, ask a trusted family member or friend (WITH STELLAR CREDIT AND LOW DEBT) if you can become an authorized user their credit card. This only requires calling the company and will take less than 20 minutes. This credit card, balance, and credit limit will appear on your credit report.
  • A redditor said “I signed up for a service that sends out letters written on your behalf demanding that they show proof and accuracy of the negative item on your credit report. Basically, you pay them a certain amount per month, and they send out attorney written letters to ALL credit reporting agencies, and debtors on your file, demanding that they prove they followed the law to the LETTER, and demand that if they cannot, then the record must be erased from my credit report. It’s basically a team of attornies and paralegals that work on behalf of their clients to remove delinquent and collections accounts from their credit reports.”

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