What’s a good effective way to establish good credit without hurting your report?
Question by Mike D: What’s a good effective way to establish good credit without hurting your report?
with inquiries? I got a new car, but even though it’s under my name, my father co-signed since I have “limited credit”. I have my student loans and now my car loan to help establish credit, I know that will be big once it’s paid off……but I won’t to establish more WITHOUT having to worry about bringing my score down?
Will my score go down for a while or just temporarily?
Best answer:
Answer by Akbar B
Your score goes primarily by how promptly you make payments on your loans. If you are late your score will plummet like a rock, and if you pay on time it will keep shooting up. Good luck.
What do you think? Answer below!
1. Always pay on time or ahead of time.
2. maintain low balances on credit cards
3. keep your total potential debt to earnings load low – If you have a card with a $ 15000 credit line, you may ask them to reduce it to something more realistic, like $ 5000.
4. I was told by an underwriter that having just two cards, a major credit card (VISA, MC) and a consumer card (Sears, best buy, etc…) is the best mix for revolving credit.
5. You should have a recent history of both installment or term (Car or house loans) and revolving credit.
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http://www.bestcreditrates.net
Building a good credit can be done in various ways. If you are fed up of the collectors tirelessly chasing you to pay your debts or if you are disappointed at your loan application being turned down, because of absence of credit history, you should learn how to do build your credit. The most important thing to remember is not to buy unnecessary items. Do not convert your ‘want’ into ‘need’, as it can drag you deeper in debt. If you are looking to build credit and do not have any history, set your priorities properly.