Build Good Credit

How to Build Good Credit

Good credit establishment starts with buying things on a credit card. When you start using your credit card, you will build a credit history. The bank then looks at this history to see if you paid off on what you borrowed. Here are a few steps that you can follow:

1. Fill out a credit card application. Pick the card that has the lowest interest rate. And also see if it offers cash back on your purchases because this will be a plus.

2. Figure out how much can you afford on your credit card bills. This credit card will be your extra expense and it should only come after your mortgage and utilities bills.

3. When you go out to shop, pay with your credit card instead of cash. Remember, you will get a credit card bill at the end of the month, so make sure you can afford to pay for it before you charge your card.

4. When the credit card bill arrive, pay it off, this way you won't be charge any late fees.

Below is another way of good credit establishment:

5. Go to your bank and open a savings and checking accounts. The bank will see that you have money and might offer you a credit card base on how much you have in the accounts.

6. You can also get a prepaid credit card. Call you bank and ask to open a charge account, you will then fund the account and spend on how much you put in.

7. You can only spend on what you deposited, once you used it up you have to fund the account again.

Only charge your credit card when you know you can pay it off at the end of every month. Remember do not go over your credit limit because a fee will be charged.