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Having a good credit score can help you get a loan, buy a car, or get a low interest rate on a credit card. It is not hard to learn how to get good credit. It only takes a responsible approach, a positive attitude, and time.
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Introduction
Good credit is one of the keys to having a healthy financial life. Many people ruin their credit early on by missing payments or taking on more debt than they are able to pay off. If you are just starting to build credit, or are one of the millions of Americans who has damaged their credit in one way or another, you will probably benefit from the advice in this guide. -
Step 1: Order a Report
To get started, learn what your credit history looks like right now. You can order a free report from a number of online sites, like www.ftc.gov/freereports. The report you will receive is the same that creditors and lenders will pull up when checking your credit, so you will know exactly where you stand. You can only get this report for free once a year, so choose a time when you are prepared to begin your credit-building mission. Be sure to report any mistakes immediately. -
Step 2: Establish Yourself
If you do not have any credit at all, it is time to start building it. A secured credit card is an excellent way to begin. A secured card is prepaid, so you can get one as long as you have a few hundred dollars (or sometimes even less) to put away into a special account. Use the card just as you would a traditional credit card, and add money to the account as needed. You can not go into debt with a secured card, and you will create a history of payments that will raise your credit score. Ask your current bank for info and options. -
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Step 3: Control Your Finances
The trick is to prove to creditors that you are responsible enough to trust with a loan. So demonstrate your trustworthiness by making all payments on time, and not taking on more debt than you can afford. If you have high-balance cards or loans, pay them off as soon as possible so that your money owed is a small fraction of your income. This will not only show your responsibility, but it will make lenders see that you will be able to pay them back. In addition, the less money you owe, the better your FICO score will be. -
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How to Invest Online | How to Fix Your Credit | How to Get Credit | How to Get Money from the Government | How to Go Green and Make Money | How to Negotiate Out of DebtAbout this page
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