3 Steps to Build Good Credit That Won’t Hurt


Credit most often creates an air of complexity in financial life, but sometimes it is contrary. Yes, a little debt is good, as staying debt-free can result in a poor score. Number of credit scores on your credit report helps to measure your activity by cable company to your employer, who reviews your credit report time to time.
Therefore, what can be the best ways to build good credit status? Here are three small credit facts that can help you to get better rates on loans, deals on credit card issues or even land a job.
A Little Debt Does Good
Credit cards can affect your bottom-line, both negatively and positively (all depends on your spending habits). A thin credit history can lead to poor credit score. Take, for example, a young adult who has not yet utilized a credit card or a retiree who might have paid off all mortgages and other personal loans and stopped using the credit cards, both can suffer from a poor credit score, so a little debt is desirable.
Solution: To boost your credit score and make your credit history attractive make or two purchases every month using your credit card.
Try Negotiating
Your credit card no doubt comes preoccupied with a due date, a group of charges that issuer sets and an annual percentage rate (APR). However, they are not something inscribed on stone you can negotiate on them. You can negotiate to a different due date or a lower interest rate or may ask for a lower payment.
Solution: You have a scope of flexibility with your charges. For example, in case you make a late payment for the first time and have to pay penalty, simply give a call and ask to waive off the fees. Your good payment history would surely win results. Even you can waive of those extra charges if you threaten to cancel your card. With a new reward card, you can gain some extra points.
New Accounts Does Not Hurt Your Score
There are myths that if you apply for more than one credit card at a time, you will take to a hit at your credit score as lenders would make inquiries. A single inquiry can shave off some points from your credit history, though inquiry counts a small portion of the report. If you have good credit build and want to grab some great offers on your credit card, do not make a fuss over the impact on your credit score.
Solution: For mortgages student and auto loans, you have the flexibility to shop rates online without hurting your credit score. For the different type of loans available today, FICO ignores inquiries from lenders that occur within 30 days. This rule also applies when rental properties checks the credit reports, so your score should be in good shape as long as you get a home loan that too within 45 days.
Here are some good ways to boost your credit score, they show that even having a little debt or a fair negotiation or opening a new account is going to build a score and will not hurt it.


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