5 Tips for Building Credit

Bankruptcy Attorney

To make large purchases like a house or a car, you need to have an established line of credit. Establishing credit is not an immediate process and can take a long time. However, there are a few tricks for building credit quickly and making sure that your loans and credit requests are approved.

  1. Don’t let bad credit marks go on your credit history. The reason bad credit is so dangerous to credit scores is because it stays on your history for a very long time; sometimes up to ten years.
  1. Keep credit balances low. A low balance and no interest rates are ideal for saving money and building your credit score. If you have a credit card and use it sparingly, you are at no risk of incurring credit debt, while still establishing positive credit.
  1. Always pay bills on time. This is perhaps the best way to establish a good line of credit. Lenders prefer lending money to individuals who have proven they are responsible and can properly manage their finances.
  1. Use your credit. If you never use credit, you can’t build credit. By using your credit card every month, even sparingly, you will establish credit more quickly.
  1. Avoid going into debt. Debt will send your credit score spiraling downwards, and will significantly hurt your chances of establishing a good line of credit. Never borrow more than you can afford, and always pay back what you owe. If you are unable to pay back your debts, consider contacting a Hamilton bankruptcy lawyer.

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