Did you know that Americans in Provo and San Francisco actually pay their bills on time? To get a good credit score, you need to make sure you don’t miss payments.
Do you need to start building your credit? We can help. In this guide, we’ll go over some more tips to build credit. Having good credit will help you get an auto loan or mortgage in the future.
Want to learn more? Keep reading.
1. Get a Credit Card
Creditors will want to see how a person manages their credit. Credit history reveals how someone uses their credit and if they were responsible or not.
To begin building your credit history, you should get a credit card. Make sure you don’t apply for too many cards.
Find out how to get your first credit card.
2. Pay Your Bills on Time
To start building credit, you’ll want to make sure you pay bills on time. Even if you only have a phone or internet bill in your name, make sure you pay it each month.
Don’t forget to pay your bills. Otherwise, a missed payment will lower your credit score. Make sure you add reminders to your phone. You could also highlight the date on your calendar at home.
3. Don’t Rack up Debt
Try to pay off your debt each month. If you can’t pay off the entire amount, aim to pay off as much as possible.
Even if you have a high credit limit, you shouldn’t run up your balance. Try to keep your credit balance below 30 percent. The lower the amount you have as a balance, the better.
If you get close to your limit, some creditors might think you’re borrowing too much.
4. Track Your Credit Report
You should also make sure you check your credit reports every so often. There are three different bureaus you should know about: TransUnion, Equifax, and Experian.
You want to check your report to make sure it’s accurate. Resolve any issues right away.
5. Don’t Default on Student Loan Payments
Student loans are one of those bills people find overwhelming. But if you want to build credit, make sure you avoid student loan default.
Student loans that get sent to collections will end up damaging your credit. Make it a priority to create a budget each month. Outline your fixed expenses and variable expenses. You’ll know what you can spend each month to stay on track.
Now You Have Some Tips to Build Credit
We hope this guide on building credit was helpful. Use these tips to build credit today. Get a credit card and make sure you pay off the balance each month. You also want to make sure you pay your bills on time.
Are you looking for more helpful finance tips? Check out our resources on the blog.