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Step 1
Charge small amounts. You should never charge more than you are able to pay back each month. By doing this you show lenders that you have control over your spending and that you are capable of repaying. Over time this adds points to your score.
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Step 2
Resist the urge to max out the card. In fact, maxing out your credit cards are the worst thing that you can do when it comes to building a good credit score. First, It will take you ages to pay it back and second you show lenders that you are prone to impulse buying. Use small amounts and keep making your payments.
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Step 3
Start slow and build yourself up. In other words, get one card and stay with that for a while. Slowly build up your credit card collection. Many people get one card and within months have a full deck of credit cards in their wallet. The more you have in credit, the more potential debt you can accumulate.
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Step 4
Clear you balance every month. This again shows that you are responsible with credit. It also keeps your interest charges to a minimum. If you charge small amounts then clearing the balance each month should not be a problem.
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Step 5
Pay more than your minimum payment each month. If you must have a balance then paying more than the minimum will help clear it much faster. It also shows lenders that you intend to pay the money back.
Comments
mikederteyjel said
on 11/26/2009 Great articles 5 stars for that information
Recently I've found a site that offer you to get free credit report and scores.This site also offer credit monitoring and credit fraud alerts, and they also can dispute your bad credit report.I thought I would help everyone here to share it.You should try it:
http://www.EliteCreditreport.Info
lordkhomar said
on 11/29/2008 Good advice here!