Different Ways to Establish and Improve Your Credit Score

By: Cameron Darwood

It should be remembered that it is not very difficult to have good credit scores and maintain them for a life. For attaining this target very little effort needs to be made and this can prevent the credit reports from going for a ride, which is mainly caused due to non payments of bills and debts. There are some simple and sensible ways of avoiding these credit card debts and hence maintaining a good credit score.

1. Avoid using multiple credit cards

Easy availability of credit cards and debit cards has led to most U.S citizens carrying multiple cards. The easy availability of these cards and the freedom to spend more than their earning capacity has resulted in a financial crisis. These days the use multiple credit cards has become very frequent and hence debtors and credit card users go overboard with their credit limits. The gradual lack of finances for repaying these debts, results in late fines and dues.

Hence most consumers are unable to repay the same and end up with credit car debts. All credit card bills arrive with added interest rates, after a period of 60 to 90 days. Hence the total amount of the debt just keeps on rising and multiple card debts have become very common in the U.S. Hence you should make more of cash payments and minimize the use of these cards.

2. Not paying bills and debts on time

Another way in which you can avoid poor credit rating is through paying your bills and installments on time. Any late payment or debt would reflect on your credit report and this would also mean that you would have to pay higher interest rates for the late fines. So you should always keep the money for the installment or bill separately at the beginning of the month. This would ensure that you donít spend this money on luxuries or other such expenses.

3. Consolidating your debts

Those who are already in too much debt should consider debt consolidation loans because it helps to improve credit scores and settle multiple debts. Remember that in debt consolidation, the total debt amount remains the same, but the rate of interest is reduced. Also the new lender ensures timely payments of all previous debts. This will ensure that all your debts are gradually cleared off and you are able to get debt free faster

4. Checking your credit scores regularly

One of the most vital aspects of maintaining a good credit score is to keep a track of the same. The three main bureaus in the U.S are given the task of making credit reports. You can access them online or get them through mail and thus check it for errors and other mistakes. This way you can also keep a track of the payments made by you and ensure that they are listed on these credit reports. Hence you would be able to plan out ways for improving your credit scores.

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Building a good credit history is essential to anyone who expects to make major purchases, rent an apartment or start a business. Building good credit is actually easy to do if you pay attention to your expenses.

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