How To Start Building Good Credit Immediately
Good credit actually refers to getting better credit facilities for you. If you have been through a bad phase and your finances have gone southward, it is not the time to brood over it. Instead, you have to devise ways and means of improving your credit image in the eyes of the lenders. It is very easy to state but implementing it is a very difficult process. A few simple guidelines for the success of your implementation are- 1. Pour into your credit report A credit report is a document showing your credit score based on your repayments. This report card will decide how much credit will you get and when, and when will you receive any further credit. Three main agencies-Equifax, Experian and TransUnion are the major credit report making agencies. Once you get a copy of your credit report from these agencies, analyze and check if all the information is correct, updated and accurate. Any incorrect information is detrimental, as it will lower your credit score. Next, analyze the column of 'Reason Codes'. Each of these will guide you to rectify your irregularities and increase your score. 2. Error-Checking You have to clear your report of errors. These could be incorrect names, addresses, birth dates, social security numbers, etc. Further information which needs to be put under the scanner is regarding your marital status, average and total family income, bank accounts, tax payment status, any legal entanglements, and so on and on. If you find any error, you have to report to the concerned agencies to rectify the same as otherwise your credit score can show varied ranges. 3. Add-up important information Try to always update your score card with proper information like if you have completed due payments of any property purchase, better career prospects, closure of bank accounts or opening of new accounts, completion of any pending legal cases, etc. 4. Credits and Debits It is a very huge plus point to have a good back up of regular and full repayments. This highlights your credit worthiness and the lending companies will make a beeline to you and offer various tempting offers. They will refuse to take a no for your answer, you will also be in a very commanding position, and probably you might be lucky to get loans at lower rate of interest. Though the above guidelines are not exhaustive, yet they are a stepping-stone on the path to building your credit.