What does it take to get a good credit rating score? First, it takes time. Having good credit doesn’t happen overnight. You’ll need to actually HAVE credit before you worry about a good credit rating score. To do that, you may want to start out small with a department store or gas credit card. These are relatively easy to get. Once you have the card, charge some small items and then pay the bill off in full for several months. We must caution you here – don’t charge more than what you can pay off in full. If you carry a balance, it won’t reflect well on your credit report.
Another way to get a good credit rating score is to have a co-signer on a large loan such as, a car loan. The co-signer is basically guaranteeing that you will pay the loan and if you do, it will reflect very well on your credit report and raise your credit score. You see, what you need to get a good credit rating score is a history of on-time payments and no abuse of credit.
What we mean by that is, you don’t want to apply for and get several different credit cards and charge items on all of them. This just shows the credit companies that you are being irresponsible with your credit and have little financial finesse or know-how when it comes to managing money.
To get a good credit rating score, the most important thing to remember is to pay on time. We can’t stress this enough. Most companies that extend credit to you will allow you a grace period to make the payment. For example, if your payment is due on the first of the month, they usually tell you late charges will occur if you pay after the 13th. So essentially, you have between the 1st and the 13th to make your payment. While this sounds great, if you wait until the 13th to make your payment, this can reflect poorly on your credit report. So, if your bill is due on the 1st, pay it on the 29th, 30th, or 31st of the previous month, just to be sure.
A great way to be sure you are making on-time payments is to have them deducted directly from your checking account. This alone will contribute toward a good credit rating score because it shows fiscal responsibility. Plus, it ensures that your payments are made on time and you won’t miss any payments. Of course, you’ll have to be sure there’s enough money in your account to cover the payments since credit bureaus also look at your checking accounts.
Getting and maintaining a good credit rating score is actually quite easy when you set your mind to it.