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Step 1
If you have no credit accounts you will have no credit rating or FICO score, so the first think you have to do is to open an account with a business that reports to the credit bureau. Many of them don't report... like the cell phone or utility companies. You will need a credit card account or a store account.
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Step 2
Once you have that account, you must use it... but not too much. Using your card reports well, but you should not have more than 25% of your available credit in use. Using more than that will lower your score.
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Step 3
Using your card and then paying it down will raise your score.
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Step 4
Always pay your account on time. Late payments will lower your score. If possible try to pay more than the minimum payment.
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Step 5
Never go over your limit... this will lower your score. Always stay under your credit limit.
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Step 6
Follow these simple rules and your credit score will climb.... break them and it will plummet...
Good luck,
Angel
Comments
nickjohnsonber said
on 11/27/2009 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
MidniteWriter said
on 3/16/2009 Very important to build a good credit rating early on, too bad they don't teach this technique in schools, 5*!
cwengre said
on 3/7/2009 Smart credit advice.
2besure said
on 2/25/2009 Great article. Building good credit is a habit.
tachic said
on 2/22/2009 Very true advice. I pushed it one month and then an annual fee caused the card to go over the limit- and though I pay the balance off every month, this negative info was still reported!