3 Steps on how to get a good credit score
Many people today are finding a good credit score is becoming more and more important. That leaves them wondering how to get a good credit score? Here is a little and basic list to help answer this question
Step 1 on how to get a good credit score: Pay your bills on time
Since the largest of the FICO score calculation is your payment history, starting there makes sense. It equates for 35% of your score and seven years of your history are taken into account. So even one 30 day late payment can carry a large influence and will be with you for awhile.
It sounds simple to just pay your bills on time, but many individuals do struggle. This should lead to using a budget as a indirect way on how to get a good credit score. This method will allow to stay on top of your bills and help guarantee you are paying them on time.
Step 2 on how to get a good credit score: Pay down your debt
This step is not always easy. Committing to paying off debt is most often going to take time and effort on your part. The budget in this method can also be effective as a means to control spending and use the funds this creates to pay down your debt. Other methods have been known to work for immediate help like selling unneeded items.
The other side of the coin is to not add to your debt. Leave your credit cards at home and use cash whenever possible. These methods have been successful for many individuals.
Step 3 on how to get a good credit score: Only Apply For Credit You Need
If you have purchased anything in the last few years, you undoubtedly been asked to apply for a store credit line. It gives some initial discount on the purchase or points towards future purchases. If you did apply and get approved for all of these you would so find you have several new credit accounts that you really don’t use or need. Since each one of these is a credit inquiry on your credit report it will count towards your credit score. Sites like MyFICO the creators of the FICO score state if you don’t need it don’t apply for it. If you start racking up several new inquires, this can drag down your score and this is counter productive for trying to get a good credit score
Conclusion on how to get a good credit score
These are not fool proof ways of guarantying of your getting there, but will put you on the right path. You must realize it is going to take time and there are very few options for a credit score quick fix. But if you set a goal for yourself and develop a plan, you should be able get a good credit score
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Tags: Credit Score, good credit score
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