Thursday, December 4, 2008

Start Over Today Gives Advice On Building Good Credit

The debt management experts have put together a list of tips for building good credit.

“Although people think that building decent credit is difficult, it is actually a rather easy process, However, it does take a decent amount of time, patience, and careful observation. To help confused families on their way to the perfect credit store, please consider the following list of the 9 ways to build excellent credit.”

1. Get a Card
A great way to build credit is by getting a credit card, and many department stores, even Wal Mart, offer cards that are fairly easy to get approved for, even if you have less then perfect credit. Buy a few things from the store that you need, but make sure to take caution, and not spend more than you know you’ll be comfortable with when your bill comes at the end of the month.

2. Don’t get too Many
After you get your first card, it is probably a good idea to wait a while before you get another. One of the main causes of excess credit card debt is the possession of too many cards. The more cards you get, the harder it is to keep track of your finances, so keep it as simple as you can with your own situation.

3. Finance a Car
If you need to buy a car, then financing it in your name (as opposed to paying cash) is an excellent way to build credit. An automobile loan may be easier to obtain then an unsecured credit card, as the banks feel much more comfortable granting credit when it is secured by an asset, in this case the car.

4. Gas Cards
Credit cards from gas stations are safe and smart ways to build credit. Plus, a lot of companies that that offer gas cards also offer discounted prices on fuel. Although, you still need to use caution, and not spend more than you know you’ll be comfortable with when your bill comes at the end of the month.

5. Gas & Electric
If you live on your own, then having utility bills in your name will build credit as well. They will run a credit check on you, but if you do not qualify,all you need to do is come up with a small deposit. You can then begin building good credit just for paying your bills on time.

6. Don’t Pay it All
Making payments that are above the minimum, yet below the balance owedis generally best if you are trying to build credit. Once you have established your credit it is a good idea to get in the habit of paying your balance in full each month. Although, you can typically buildcredit more easily if you can pay off your purchases in multiple payments.

7. Close Old Accounts
All finance records that mention your name can show up on credit reports, so make sure you close old accounts after you pay off the debts owed. If you have too many unused credit cards in your name it can prevent you from obtaining credit in the future.

8. Make a Budget
The best way to maintain good credit is to have good financial records in general. By making yourself a monthly budget.

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