Having a good credit record is something that most people should aspire to have. Not only does it mean having easier access to loans and other types of credit, but it’s generally a good reflection on your level of responsibility and reliability as a borrower.
Know your credit score
Check your credit record at all credit bureaus. Ensure that the information is up to date and accurate. If you have no credit record at all, you can then consider applying for credit. Make sure that you need the credit and you can afford to repay the debt.
Close accounts you don’t use
Close any retail accounts that you are no longer making use of. This way you can avoid having unnecessary credit.
Keep in mind that stability is important
If you change jobs frequently or you move around a lot, keep in mind that this can be used as an indication of your stability. Credit providers are likely to grant credit to individuals who can demonstrate stability. This way, you are less likely to have your application rejected- which will have a negative effect on your credit record.
Repay bills in your own name
To ensure that you build a good credit record, all your bills and the debt that you are repaying should be in your name. This way you can prove that you have been paying your debts on time and are a responsible borrower.
Pay more than the monthly minimum
It helps to pay a bit extra. Make sure that you keep all documentation. This way you can prove that you’ve been paying on time and are diligent about repayments.
Keep an eye on your credit card balances
The smaller the percentage of revolving credit you have versus how much you’re actually using is important. Pay down your balances and keep those balances low.
Pay your bills on time
Make on-time payments diligently. This has a good effect on your credit record.