Building Credit Helps Realize Dreams

4 June, 2012

Goals which people admire nowadays are things like purchasing vehicles, living in a nice home, or getting loan to start or widen business. Sadly, you won’t be able to get the loans if you are having an awful credit. Still you have the desire to objectify your goals, take action of building credit from the moment on.

‘How can I start building credit?’ is the most popular question among younger consumers. Here are the understanding of right and wrong way in building credit, and some tips in building credit.

Borrow some money and plan to pay it back in building credit is the way most people think is a good start to build credit, and it is absolutely the wrong way. To establish good credit, you don’t need more than one or two credit cards, you too don’t need to borrow big amount of hundred dollars. It’s not necessary to spend money on credit card only to establish good credit. Why? Because by owing money, your income to debt ratio is being taken into account, and your credit score is becoming worse.

Everything good takes time, including building credit. It’s good to expect building card takes few years, like you are freshmen and receive your credit card when you are about to graduate from college, you’ll probably be established. The key is to be patient.

Upon choosing credit cards, you need to be wise, and after you decide which one you choose, make sure to stick to them. Note that you don’t need special credit card for points or a store credit card. Live naturally, never beyond your means for one late payment will put a mark on your credit score. No perfect credit needed for perfect itself is never exist, find all doors open and all obstacles erased.

Polish your money management skill with building credit. Learn that you can still find yourself in debt whether you made a very small income or big one. You are responsible of your credit, so make sure you are knowledgeable about how the system works and you can effectively manage your money then.

If in a year your wallet ever lost or your card stolen from you, request a credit report at least twice. You can make yourself up to date about your credit by requesting credit report. You’ll know if there are any error and trouble shoot them. Like if new account is opened and you know nothing about it, you can stop the fraud (which possibly is what happening) before further damage occurs.

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