Get good credit, get good credit, and get good credit! We’ve all been bombarded by the phrase, “Get good credit!” Good credit scores have always been pounded into our minds as being the key to a financially free future and a great sense of accomplishment and guess what- it’s completely right! The better your credit score is, the better chance of getting that lower APR credit card, the better chance of you getting that new car and/or that house loan you’ve been trying to get! Your credit report will have a lot to say about how responsible you have been in your life, at least for the past seven to ten years! The better you have dealt with credit the better credit card you get and the better financial situation you will be in!
Why the heck should I even care about my credit, I’ve got enough money in the bank?! Many people make the assumption that if they have enough money, or make enough money, that they shouldn’t have to worry at all about how they handle their credit. However, this type of thinking is what gets most people in trouble and has them in debt up to their eyeballs! Whether you are shopping for a new car or home or just browsing the internet looking to apply for a credit card online, you’re going to want good credit score to be by your name.
Your credit rating, which is outlined in your credit report, is what any creditor will look at before they lend to you. Now it doesn’t even matter how small of a loan they are preparing to give you, if you don’t have a respectful credit rating/ score you most likely won’t get the loan. For instance, if you want to get a lower APR credit card because you tend to carry a monthly balance, you’ll only get one if you have a good credit score. On the same token, if you are interested in obtaining one of the highly popular rewards credit cards, which actually pay you back for using the cards, you will most likely need a credit rating above 620 (out of 800). Basically, the higher your credit scores the better deals you will qualify for and the lower your score the more times you will have to face credit rejection. Here are a few ways you can improve your credit history and apply for credit cards for excellent credit:
- Apply for a credit card of some sorts! If you want a good credit score the first thing that you should be doing is trying to get some sort of credit card. If you’re a student this may mean getting a student credit card; if you’re a business owner this probably means a small business credit card; if you have bad credit this could mean a credit card for people with bad credit or a secured credit card at worst. It doesn’t matter what your position is, obtaining a credit card will be a good first step to getting good credit card offers.
- Open a bank account and a checking account! If you don’t have either one of these accounts currently you should look into opening them because creditors will take you more seriously! A creditor that looks into your financial history may see that you don’t have a bank account of any type and see this as a bad thing because you don’t have the capabilities to pay bills (checks) and you aren’t saving toward the future in a smart way (savings).
- Make sure your credit report is accurate! Did you know that more then half of the population has discrepancies in their credit report that actually lower their credit score? Yup, it’s true and you have a good chance of being one of these people! If you want to make sure your credit report is accurate and in good standing then you should go to one of the three main credit bureaus (Trans-Union, Equifax, Experian) and request a copy of your report. Make sure all of your personal information is correct (address, phone number, social security number) and make sure there aren’t any suspicious happenings (unauthorized credit accounts, ECT). While it will probably cost you $30 to $40 to check your report, it is a small amount in order to protect your finances!
If you really want to build good credit and work on getting credit cards for excellent credit then you can, but it will take a little time and a little effort. Follow the above guidelines but most importantly, make sure that you act responsibly with your finances. This means paying your bills on time and in full as well as living within your means. In other words, don’t spend what you don’t have! Building a better credit score can be effective, reassuring and most importantly put you on a better standing with creditors!
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