How to Build a Good Credit Score!

There are many ways to build your credit up and some good tips are available to get you going in the right direction. Just remember that payday loans and cash advances don’t improve your credit score. Most payday loan companies don’t even look at your credit report before they approve you for the personal loan. Below are some great credit and personal loan tips to improve your credit score.

If you want to improve your credit score, it would be a good idea to at least check your credit score to see where you stand. The top three credit report companies out there are Experian, Equifax and Trans Union. All consumers are entitled to a free credit check each year at The data history in these credit reports are then used to create credit scores to determine your financial standing. It is good to remember that lenders, employers, landlords, insurers, and even the utility companies look at the credit scores to determine if they can take the risk with the client to do business with them. Also make sure to check your credit report for fraud and identity theft, which has become more common in time of economic hardship.

If you don’t have a checking and savings account, go get one today. Many banks offer a free checking and a free savings account. All that is needed is your driver’s license, Social Security card, and cash or check to put money into the account. Many lenders out there seek these bank accounts in your credit report to show that you have financial stability and can handle the payments.

When lenders are reviewing your credit report, they are looking for two main things. The first think lenders look for is to see if your bill have been paid on time, every time. Slow pays and late payments have a negative effect on lenders, because there is a higher chance you will slow pay or late pay the lender back. By just having slow pays and late pays on your credit, this can lead to an automatic loan denial, because lenders don’t like high risk. The second most important thing lenders look for is the amount of credit you have open, and how much you are actually using. Don’t max out your credit cards. It is best to use 30% or less of available credit to maintain a good credit score. You also don’t need to keep a balance on your credit cards to get a good credit score. A high balance of credit card payments paid on time will not help. However, a low balance with on time payments will build a better credit score over time.

Two ways of establishing credit really fast are by receiving a credit card and taking out a loan, such as a car loan. If you are not approved, then you can get a co-signer to help be responsible for the loan in case you default on it. Just don’t default on the loan and make your payments on time up until the very last payment is done. This will build great credit over time and shows lenders that you are a responsible borrowing consumer.

If you are a college student, it is very easy to get a hold of credit cards. Credit card companies know your parents are helping you out pay for school, and know they will bail you out if you can’t pay off your credit cards. Just look for a credit card with low interest rates with no annual fees or hidden costs.

A secured credit card is an easy way to build credit and is offered by companies such as, and Basically, all you have to do is apply for a secured credit card, deposit money on the card, and that is your spending balance. It works more like a debit card, but functions like a credit card with no PIN number needed upon purchases.

Store credit cards are easy to get a hold of and can be used for items purchased in their stores only. They are not as effective for your credit score as a bank card would, because the spending can only be done at that specific company. Many store credit cards are available and are easy to get a hold of, such as a Best Buy card, Sears card, Macy’s card, Gas Cards, etc. Just don’t get too many store credit cards.

An installment loan is another type of loan that is great to build credit. You can apply for a small installment loan that lasts for one or two years and pay it back. This can help build you credit quickly and be used for a car or home.

The best type of advice to achieve a good credit score is to follow the above strategies and continue to use your open credit lightly. Rotate the use of your credit cards, but don’t use more than 30% of your open credit, and make sure you pay the balances each month. Try to avoid charging more than what you can actually afford and ask to increase your open credit so it shows lenders that other businesses are willing to loan more money to you at any point in time.