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Article:
4 Steps to Establishing Good Credit by: James H. Dimmitt As a consumer you've learned the importance of establishing a good credit rating with your lenders. Whether you are shopping for a new home or auto, or searching for the best deals on insurance, your credit worthiness will be judged by your credit rating or credit score. A bad credit history or bad credit habits will place 'black marks' on your credit profile. These include things such as late payments, having an account assigned to a collection agency, and of course bankruptcy. Establishing good credit habits and therefore a good credit rating will improve your credit worthiness. This will be reflected in potential lenders offering you substantially lower interest rates and better deals on credit offers. Here are 4 tips to help you create a shining credit profile: 1) Pay Your Bills On Time Lenders only have your past payment history on which to decide the type of credit risk you present to them. How you pay off your debts now indicates to them how you will pay off future debts. 2) Don't Carry Too Many or Too Few Credit Cards How much is too much ? How little is too little ? Many credit experts and financial planners suggest two to four credit cards is just the right mix. 3) Pay At Least The Minimum Due Always pay at least the minimum due payment, but never less. And remember, just paying the minimum payment means it will take you years and years to pay off that credit card. Example: Paying off a $'2
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