How To Build And Maintain A Good Credit Score


Having a good credit score is very important. Your credit score determines the interest rates you’ll receive on your credit card and for major purchases like vehicles. A decent credit score can improve your chances of getting personal or home loans from lenders. Additionally, employers also look at credit scores when making hiring decisions, and most employers want candidates who demonstrate responsibility. However, if your credit score is lower than you like, it can be fixed! This article discusses how to improve and maintain your credit score.

Achieve a good credit score

How to improve credit score?  The first step is requesting your credit score report. You can do this for free on the internet, but be sure to read the fine print. Your report will have the numerical score (350-800) and also will list the reasons for blemishes to your credit score. Usually these are lenders you owe money to, which can include utility companies. Some lenders may not look familiar, because debts are sold to collection agencies. However, be sure to check your report for inaccuracies.

Second, figure out how much money you can spend to repair your debt.  The only way to repair your credit is to eliminate debt that is being reported along with your score. Keep in mind most credit agencies prefer some payment to none, and many will negotiate down from the amount of debt you had with the original creditor.  If you cannot afford to settle any debts, you may want to speak to a financial adviser.
Credit Score

How to maintain a good credit score?

Maintaining good credit is as simple as being realistic about your money management. Break down your monthly expenses and income. If your expenses are greater than your income, look for opportunities to cut some costs. Once you have cleared debts that have clouded your credit score, keeping your new score can be managed by paying debts off in a timely manner.

Can you have a perfect credit score?

Technically you can. However, if your score is 760 or higher, then you probably will already receive the best rates available. Getting to that high of a range does take more effort than maintaining a score. Credit scores involve more than just your expenses and income. To have a high credit score, you need to have credit you are making regular payments and purchases on. For example, you can have a low limit credit card, and use it for groceries, and then pay in full each statement. Another example is making your car payment on time each month. Remember, lenders use your credit score to determine if offering a loan is a risk. Having enough income is part of the equation, but to have a really good credit score, you also have to show that you are responsible for your payments.

In sum, your credit score can be improved and maintained with being realistic about your spending. Achieving a good credit score can improve your chances of lower interest rates, which saves money in the long run. Lowering your debts can improve your quality of life. The process begins with requesting a credit report, and facing whatever it is that impacting your score, then contacting the companies that hold the debt. Once your score is free from these blemishes, your score improves if you make an effort to use some credit, but pay it off regularly.

Read our site to get more details about personal, cash and car loans only on freemoneywisdom.com. Image attribute: By User:Pne [CC-BY-2.0], via Wikimedia Commons

Written by Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER
and FACEBOOK
. Happy investing 🙂

Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER and FACEBOOK . Happy investing 🙂

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