Are you looking for the Easy Ways to build good credit? When you have a bad credit, it  can prevent you from getting a loan, to take care of any of your needs such as ; getting  a home, financing your education, and even from getting a job. That is why building a good credit is ideal.

From your first credit card, everything you do regarding credit becomes part of your  credit history. It is a MUST to use your credit judiciously to have a good credit. What do you need to do?Easy Ways To Build Good Credit

Easy Ways To Build Good Credit ; Borrow What You Can Afford to Pay Back

To avoid getting into trouble , borrow within your limits. Do not exceed that. This attitude shows that you are accountable and responsible. You’ll find it easier to borrow money and get new credit when you show that you have the discipline to borrow only what you can afford to repay. Even if it’s a loan, borrow only what you can pay after  reviewing your budget to see what monthly payment you can afford.

Easy Ways To Build Good Credit ; Use a Small Amount of the Credit You Have

Using all the money in your credit card is not ideal especially when you don’t plan to pay the whole balance off within the month. Financial institutions know that borrowers who finish the money in their cards often have difficulty repaying what they’ve borrowed. You will be giving yourself a bad credit when you run up big credit card balances and don’t pay them off.  It is best to keep your balance below 30% of your credit limit  in order to build good credit.

Easy Ways To Build Good Credit ; Start With Only One Credit Card

It is not ideal to have many credit cards within the first few years of using credit. This is because, the more credit you have, the more you’ll end up using and the harder it will be to keep up with your balances and payments. To build good credit, avoid this.

Avoid excessive inquiries too.  Credit inquiries count for 10% of your credit score and opening new credit cards lowers your average credit age, a factor that’s also 10% of your credit score. Learn properly to be responsible with credit before you apply for additional credit cards.

If You Carry a Balance, Do It the Right Way

Ensure that you pay more than the minimum each month to pay off your balance as quickly as possible. Avoid making late credit card payments.  and continue to keep your balance at below 30% of the borrowed amount.

Let Your Accounts Age

Always allow your oldest accounts to remain open. The longer you’ve had credit, the better it is for your credit score. Leave your oldest accounts open since they help increase your credit age and build good credit. The credit Bureau will drop some old and closed accounts after several years.

Make All Your Payments on Time

Late payments are not ideal at all. It tells badly on your credit score. Some cards have late payment fees. When you pay late and still add late payment fees, you will only be spending more. Prevent negative accounts from being added to your credit report to build a good credit score. A serious delinquency like a debt collection can be hard to overcome.

Pay Your Credit Card Balance in Full

Pay your balance each month . This proves that you’re capable of paying bills. Since a large part of your credit score includes timeliness of your payments, paying your balances on time improves your credit. It also helps your lenders to trust you.