Thursday, March 12, 2009

Improve your Credit Score

By Kay Riter

You should know your credit score and you should strive to get it as high as possible. Your credit must be good if you ever want to get a loan or credit card. You need to know your credit card and continuously work on building it up.

Bad credit can be caused by paying bills late or not paying them at all. You might not have any credit if you've never been granted any, which is where most young people are. Even despite no credit or bad credit, you can work to repair it and build it up.

Without credit, it may seem impossible to get any kind of loan to build credit. You don't have to go out and apply for five credit cards. Any kind of loan payments and other payments can build credit.

If you need a loan but have no credit, look for someone that has good credit and who will take a chance with you. You can ask them to be a cosigner on a loan with you. They will cosign and pay any bills you fail to pay. If you don't pay, you will be damaging your credit, so don't think they will just pick up the slack. Your credit and your relationship with that person will be tarnished.

If you don't need a loan or you want to take a less aggressive credit building path, there are other things you can do. If you have a cell phone plan, every time you pay your bill on time, you are building good credit. If you buying a computer or other electronic on credit, each bill you pay will help your credit.

While I don't recommend financing something you can pay up front, you could finance it and pay it within a month or two. This will build your credit and charge you minimal interest. Also, paying utility bills, rent, and any other monthly bills will add to your credit.

Those with bad credit need to take the same advice. Since you have bad credit, you probably weren't very good at paying your bills on time. This needs to stop! Paying your bills on time is the only way to keep your credit from going down and to build it back up.

If you have bad credit, you probably spend more than you make. This is reckless spending. You need to start budgeting and get a plan to pay all your bills on time every time. Stop using credit cards and pay your bills on time.

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