Steps to Build a Good Credit


A credit score is a vital asset for your current and future financial. To a large extent, your credit score determines the opportunities available to you, especially when it comes to finances. Therefore, the importance of building a good credit rating cannot be overemphasized. “This is something that you really can take to the bank.”


There are several ways to build credit and steps to take that you must follow with a few rules and to respect them as well if you sincerely want a good credit rating. However, after establishing your credit, you will see that it was worth the stress.


Reduce debts Debt Word


Debt is a monster that drags down your credit and destroys your credit history. It does more harm than is generally recognized. The first step in building a good credit score is always to reduce the debt to the extent possible. It is recommended that you keep your total short-term debt for example credit card balances, phone bills large print, etc. installment loans to a total of more than 20% of your total income. It will be easier to pay debts, without missing payments or defaulting. It also creates a very low profile of indebtedness that looks very good on your credit report.


Income history


Another highlight: you can do while building a credit is a history of income. Maintaining a good balance with banks and other creditors will also go a long way in describing yourself as creditworthy.


Secured credit card


A secured credit card is another tool you will find useful in your quest for a solid credit rating. With secured credit cards that you have to keep a minimum deposit in your account. The credit line is still attached as a percentage of minimum deposit. It serves many purposes and is very useful in building a good credit rating. A secured credit card ensures that you do not spend above or accumulating unhealthy debt. It creates a financial discipline for you that is essential to maintain a good credit history. You do not need to worry about the secure cards, it is not different from regular cards and nobody will know that you have a secured card if you didn’t tell them.


Retail cards


Other ways to build credit, it is also useful for national or local retailer card. It is always easy to earn credit from retailers and once you have established a good reputation from a retailer, you can use the reference to boost your credit, but also to obtain additional funds from others. You will see that it is quite easy to establish a good track record with retailers and will also be pleasantly surprised by the positive influence that can happen on your credit rating.


Furthermore cards and other retailers, it will also help to open a current account when building your credit. When potential lenders check your credit with your bank, they, often have one objective is to check your initial deposit. It is therefore logical to open your bank account with an important initial deposit, as you can afford. It is also reasonable to keep the account active and balanced, and ensure that you do not overdraw the account. As repair bad credit, building a good credit takes time and a lot of financial discipline, but in the end, you will be proud of what you have achieved.








The Best Ways to Build Credit


There are many ways to build credit but we insist usually about credit score because it’s the most important in building credit, here are some tips to improve your credit score:


Pay your bills on time Paying Bills


This is a great way of ways to build credit to show that you can manage credit wisely. Late payments or accounts sent for recovery may affect your score. Payments for utilities are not registered every month. However, these debts be displayed in public folders if your account goes to collection. Payments for cell phone, credit cards and loans are reported each month. Keep track of your due dates and manage your money in order to pay all your bills on time.


If you cannot pay on time, take action


Contact the creditor and ask to make an agreement to ensure that the delay is recorded on your file. If you become ill or become disabled, check the terms of your loans and other forms of credit to see if you are covered so that your payments are covered.


Try to pay the full balance of your credit cards


This indicates that you have the funds to cover credit you use. It is also a good way of ways to build credit to avoid the debt becomes uncontrollable. If you cannot pay the full amount, pay-as many as possible in accordance with the due date. Be sure to make at least the minimum payment.


Pay off your debt as quickly as possible

Over your debt remains longer, it seems impossible to manage, and it will hurt your score. Assume only the amount of credit you are able to manage.


Respect your credit limit


Do not exceed your credit limit on your cards or other credit sources. When the balance is higher it will hurt your score. Try to keep your balance well below your credit limit.


Do not ask credit too often


It may be good to show that you know how to handle various types of credit. However, the fact of asking too much credit for a short period of time can indicate that you are in financial instability. Each credit application causes an inquiry to credit bureau. Too many inquiries on your file will hurt your score.


Use the credit


A bad credit score is sometimes a sign that the person does not use much the credit. You cannot build a credit history without credit, just use it wisely.


Correct errors


Get a copy of your credit file. Make sure it is free of errors.

Errors are not always yours, but you are responsible for correcting.


All these methods are good ways to build credit; you have just to apply!









Protect Your Credit Card on the Internet

Credit Card Protection On The Internet The scammers wear all possible tricks to steal confidential information they are seeking in particular those relating to bank accounts online. However, you can avoid scams within certain safety. In case of payment by credit card on the Internet, should you check that should be avoided, what steps to take? We try to answer all these questions in this article.


Buy safely on the Internet with credit card, what should I do?

The least we can do is making sure that your PC has a firewall and anti-spyware or anti-spyware that protects the system from outside intrusion. On the Internet, you need to choose passwords that are difficult to crack passwords combining letters and numbers. It is crucial to make transactions only on secure sites that are recognized by the small padlock displayed at the bottom of the page. In principle, on a secure page when inserting bank codes, the numbers become a sign shaped like a star. At the end of the steps, it is advisable to erase the traces left in the cache folder of Internet browser that allows you to view the pages you visit even without a connection. As a precaution, we must also avoid transmitting credit card information by e-mail. Among the methods of data theft, there are software keyboard captures called “key loggers”.

Key loggers record everything that is typed in order to find a set of 16 numbers typically representing credit card numbers. The trick to avoid this trap is to create a diversion by associating the actions made on the keyboard with the clicks with the mouse. For example, to enter the card number is divided into four sets of four consecutive numbers. We begin by typing the second series of four figures by adding some letters. Then, with the mouse, click to position the cursor to the left that is to say at the beginning of the box to type the first series of four digits followed by 3 or 4 letters. Then we continue with a click of the mouse to position the cursor to the right of the figures already and grabbed the last series and so on. To complete the operation, simply delete unnecessary characters. In doing so, it is difficult even impossible to key loggers decipher what is actually typed.


Use an e-card for Internet purchases

Today, banks have implemented a system using a virtual card for purchases on the Internet. To qualify, the client sends a request to the bank to send him a separate ID and PIN letters. Then it will simply download software required by the bank. From that moment, he can pay online by clicking on the icon of the Software that will provide a credit card number, a number of cipher and an expiry date. This way the buyer does not have to disclose credit card details.


The Credit History: Patience and Perseverance…

Ways To Build Credit: Checking The Credit History and ReportFortunately Credit Score is not fixed even if it is not instantaneous to move from a score of 330 (most often the case with newcomer) to 849. So we built a credit history (credit history or credit report) over several years to get the best score possible.

However, the thing is not necessarily easy because you have to find the delicate balance between open credit lines to show they are obtained, but not too much to show that we don’t need … In short, to obtain credits, but do not live on credit.


Credit history, among ways to build credit


To build your credit history, assumed debts to repay, and their systematic repayment at maturity.

But how to pay its debts if for credit, you must have a Credit Score? … There are few ways to start, from scratch:


 The line of credit

The bank allows you to open a line of credit in an amount equal to an amount that you have placed in a savings account which will be used to secure your credit. Of course, this solution costs a bit of money (interest on loans granted are higher than the interest on the account that pays), but it allows to start.


 The guaranteed credit card

This is somewhat similar to the previous mechanism used by some banks: a card with a credit line is granted in exchange for the same amount recorded on an account that serves as collateral.


 Be co-partner on a credit card

Your credit agency allows you to be co-signer on the credit card of another person (usually your spouse). Please note that the responsibility for repayment is shared between two authorized users.


Canadians are also using this scoring system but in Canada, we are talking about credit rating. Therefore, they do not need to have credit score in the USA. There are there two credit reporting agencies: Equifax Canada and TransUnion Canada; just based on the U.S. to refer to one of these agencies to know the credit rating of their customer banks.

In the USA, your Credit Score is managed by three agencies: Equifax, Transunion and Experian. When you check your credit, you send your social security number to one (or all) of these three agencies that respond with a credit report and Credit Score.

Good to know: You have the right to see your 3 credit report once a year; it’s free and ensures that there are no anomalies (bad information, identity theft …).



Credit Score, What Is It?

Ways To Build Credit: Credit Score LevelsThe Credit Score is a score for each person in the United States with a social security number. It is supposed to reflect its ability to repay its debts. In other words, it establishes your financial profile to determine if you are a serious student (if you pay your bills and repay your debts well and on time) or a deadbeat.

So, the higher your score, the higher you will be appreciated by banks and you can easily get a credit card or a loan.


What is the Credit Score?


It is very important to have a good Credit Score because it allows obtaining a credit card, credit lines, credit, and more generally it facilitates any transaction of daily life.

So you can get an interest rate on a loan much more interesting, save on home insurance premium or open an account with an electricity supplier or mobile telephone line without bail, if you have a good Credit Score.

FYI, some phone companies may ask for a deposit of $ 1,000 for an opening line for a non-resident, tourist, or someone who does not (yet) Credit Score.


Method of calculation


Some indications:

– 35% of Credit Score is based on the consistency of payments.

– 30% of the score is calculated on the percentage of your credit capacity used. In other words, you will be rated higher if you use a small portion of your credit lines instead of taking advantage of the maximum authorized your GAP, TARGET and MACY’S card.

– 15% of the note is determined by the length of credit history.

– 10% of Your Credit Score is based on the type of credit you have, use or property (car, student loan, mortgage loan or revolving (credit cards or lines of credit) or other.

– 10% of Your Credit Score is based on the research you made to obtain credit. You should know that every time you ask to receive a credit, it affects your Credit Score negatively.



– 330-619: You are a bad student. Besides the banking jargon, they call you a “Credit Leper”.

– 620-659: A very average student, so some credits under certain conditions may be possible.

– 660-720: Serious Student and in progress, with a credit score considered good. For you must know that 720 is the average American credit. This means the score that is often asked for credit or financing to normal conditions.

– 721-750: Very good status. You meet all the conditions to obtain financing or credit terms quite satisfactory.

– 751 +: You are in the first class with an excellent Credit Score. You can avail loans at very favorable terms.



Discover the Secured Credit Cards

Ways To Build Credit: Secured Credit CardDiscover how secured credit cards help to correct and improve your credit score

It is a hopeless situation, in order to obtain a credit card, you must have good credit, but you cannot improve or rebuild credit score without a history of good payment on a credit card. It’s a vicious circle for those who have a bad credit standing and it is a mystery to all newcomers who have no credit history.

Fortunately, there are options available for those who need a boost in credit, and as guaranteed approval and secured credit cards or guaranteed.


A secured debt versus an unsecured debt


The traditional credit cards are designated as unsafe. This means that the lender offers lending based on the good faith and credit coast copy that proves you’re not a lousy credit risk is likely to default on money lent.

Secured credit cards, on the other hand, make you join the action to words by asking you a prepaid amount as collateral in exchange for a credit card. This amount is retained as the balance on the card and can be removed just as long as the card is in use. The lender gives you a credit limit equal to the same amount or a little more in some cases. The only way to get back the money invested as an advance is to pay the card balance in full and close the account with the lender.


Features of secured credit cards


Apart from the initial payment, the secured credit cards work exactly the same way as a traditional card. There are options that are offered by both MasterCard and Visa that are accepted by the same retailers. In most cases, the card will be identical to its counterpart insecure. Billing will also be monthly and interest will be applied to any outstanding balance over to the next billing period. The main difference is the level of the credit limit. While it may be easy to apply for a limit increase to an unsecured card, lenders of secured credit cards may require proof of conduct by using the card or increase the lead first. Another disadvantage is that the options for secured cards are often accompanied by higher interest rates than many other options on the market.


This is not a prepaid credit card


A commonly held misconception is that secured credit cards and prepaid credit cards are the same thing, and we can easily come to this conclusion because both require a payment to establish a credit limit. However, a clear difference is that secured credit cards report your payment history to the credit offices and prepaid credit cards do not. This is vital since using your secured credit card, so you can create a history liable to the use of your revolving debt.



The Credit Rating Principals

Ways To Build Credit: Credit ScoringLenders also assign a credit score, calculated on a scale of 1 to 9. For example:

R1 (paid on time)

R4 (paid between 90 and 120 days)

R9 (bad debt, debt to pay or bankruptcy)

In addition, the credit bureaus can see certain public records in courthouses and municipal courts and enter in your credit file information therein about you (for insolvency judgments, etc.). Credit Offices record this information and cannot pass it to your creditors only with your consent.


The credit score


The credit score is a snapshot of your financial health, at a specific time. It indicates the risk you present compared to other borrowers. To build credits use a scale from 300 to 900. Plus the number that you are assigned is high, plus the risk you present is low. It is based on the following factors:

– Your payment

– Habits collection or bankruptcy

– Your debts

– Balance on your debts (the higher it is, the higher your credit score is affected down)

– The history of your account

– Number of times they visited your credit report recently

-Type of credit you use

Financial institutions use the credit score not only to measure the risk you present, but also to determine the interest rate you will pay.


Note: lenders can use their own methods to determine the credit score.


How long the information is kept?


By law, the credit offices must retain the information for a reasonable period. In practice, this period is usually six or seven years. Here the number of years during which different types of information is stored.

How to Build a Good Credit Record?

Ways To Build Credit: How To Build a Good Credit ReportVarious factors can affect a credit record. Here are some tips to build a good one.

– Make a good track record in terms of credit. You never contracted loan or demonstrate your ability to repay? Your credit score is probably low. If you have a regular job and a stable address for at least one year, you may apply for a loan or a credit card and pay one or the other within the time limit in order to determine your creditworthiness. It is not necessary to take out large loans to build a good credit history. For example, you could have a credit card with a limit of $ 1,000, borrowed $ 100 on this one each month and then pay off the entire balance each month before the due date.

– Pay your bills on time. Payment of utility bills (telephone, electricity) is not part of your credit file, but some cell phone companies may report late payments to credit bureaus and thus reduce your score.

– Pay your bills in full by the due date and if this is not possible, then at least the minimum payment.

– Keep the balance of your loan at a lower threshold than the limit.

– Pay off your debts as quickly as possible.

– Avoid multiply credit applications. This sends the signal that you are looking for credit and you perhaps struggling to meet your financial obligations.


Who can see your credit report?


In principle, only those to whom you have given permission that have the right to see your credit report. Usually when you apply for a loan or credit card application, the future creditor requires that you complete a form with permission to access your credit report. Similarly, there may be an insurance company with which you want to want to see your business credit file. It is also possible that the owner of the property you want to rent request to see your credit report.


Warning: You are not required to accept that someone checks your credit file. You refuse, but insisted to check your ability to pay? He is the owner of the property you want to rent? Perhaps could you please provide a letter from the owner of your current home or a copy of your credit report (after having crossed some personal information)?


Tips To Avoid Paying Fees on Your Credit Card

Credit Card FeesYou have applied for a credit card. You have read the form and the contract to understand the conditions of use of your new card. But do you know how to reduce or even avoid paying interest charges? Are you aware of the consequences of a late payment? Do you know what to do in case of unauthorized transactions?


Benefit from the grace period


When you make a purchase with your card, you get an interest free period (grace period) if you pay your card balance in full by the due date for the current month. The grace period on new purchases officially begins on the last date included in your monthly billing cycle.


Provided you pay the balance of your card in full by the due date for the current month grace period on new purchases is at least 21 days. The grace period of 21 days applies even if an outstanding balance is carried forward from the previous month.


To avoid paying interest charges, it’s recommended:

Always pay the full amount due shown on your statement of credit card no later than the due date;


Do not obtain cash advances or perform operations that resemble cash transactions such as wire transfer or money order.

Remember that paying only the minimum amount required; your credit card is very expensive because the interest charges continue to accrue.


Understand the consequences of late payment

If you do not your payment on the due date shown on your statement, you will have to pay interest charges on the entire amount due, until that you pay in full. You may also:

– Penalties, including an increase in your interest rate;

– Affect your credit rating;

– Cancel your credit card by the card issuer.


Unauthorized transactions: what to do in case of a problem

If you notice any unauthorized transactions on your account, the RAC suggests:

Immediately contact the card issuer to report unauthorized transactions;

Inform the police in your community (if you suspect fraud);

Check your credit card agreement (contract). By law, your contract should detail your maximum liability in case the card is lost or stolen, or if unauthorized use of your account number credit card.

Choose the Credit Card That Suits You

Variety of Credit CardsChoosing the right credit card is not easy. There are in fact hundreds of different credit cards, and each has its own characteristics in terms of interest rates, fees, benefits and rewards. If you take the time to shop around and carefully consider the options available to you, it will be easier to find the credit card that fits your lifestyle and your budget.


10 tips to help you use it wisely


1. Be well informed

Make sure you are well informed before you commit. When you apply for a credit card, you enter into a contract which is accompanied by obligations in terms of the law.

Read the terms carefully to understand their application and know your responsibilities.


2. Live within your means

Remember that having a credit card does not increase the amount of money you have available for your expenses. Continue to live within your means and your budget.


3. Pay your balance

You should pay your balance in full each month, respecting the due date. In reporting a balance, all expenses you make using your credit card cost more than the purchase price, because you pay interest.

The longer you carry a balance, plus the cost is high. Financial institutions must indicate in the credit card statements they send you how long it will take to pay off your current balance in full if you pay only the minimum each month.

To make your own calculation, or to find other options to help you pay down your balance faster and pay less interest.


4. Make payments quickly

If you cannot pay your monthly balance in full, and the outstanding balance increases, it means that you spend more than you can afford it and you are more into debt. If this is the case, stop using your credit card until you have regained control of your financial situation.

Because interest expense is charged daily, try to make your payments as soon as possible to reduce these costs. In addition, if you have trouble controlling your spending, consider asking the financial institution that issued your card to reduce your credit limit.


5. Avoid impulse buying

Avoid impulse buying, especially if you do not have enough money in your bank account to pay. Before making a purchase, ask yourself if it is really necessary. Also ask yourself if you need it now, it may be better to wait to have enough money to make the purchase.


6. Do not increase your spending to get more points

If your credit card offers a rewards program, do not increase your spending and do not buy things you do not have the sole purpose of accumulating points.


7. Avoid cash advances

Unlike regular purchases, it does not provide a grace period for cash advances made by credit card. You pay interest from the day you receive an advance of funds until the day you repay the full amount of the advance.

Instead, use your debit card if a merchant offers the option of “cash back” with your purchase or withdraw money from your account at an ATM from your financial institution. If you do not have enough money in your account, review your budget to determine how to reduce your expenses.


8. Ask your financial institution

If you need money for unexpected expenses, see the staff of your financial institution. You may suggest methods of payment including interest charges are lower than your credit card, such as a line of credit.


9. Make regular payments

Make regular payments to establish good history of credit. By paying the balance of your card in full each month, you will show to other lenders that you are a responsible borrower.


10. Read the fees associated with your card

Be aware of all the fees associated with your credit card. All federally regulated financial institutions must ensure that there is an information box in the application form of credit card and credit agreement, which includes key information such as fees and interest rates.