Improve Your Credit

Whether you like it or not your credit rating is an important part of life. Your credit rating can make it very easy to purchase something or impossible to purchase something. It is only a number, yet it can control many aspects of your life. With a low credit score, interest rates are much higher. And a higher credit score will give you a much lower interest rate. Just two months ago I was purchasing a new vehicle. They gave me a quote base on an average credit score and told me it could change depending on my score. Confidently, I asked them to go ahead and check it and give me the new price. Long story short I saved $25 dollars a month, because of my credit score. It's not very complicated to get a good credit score, but it does take a lot of financial discipline. Below is a list of things that will get your credit score to perfection.

• Pay off outstanding balances. Any credit card bills or student loans with high amounts will lower your score. If someone is going to lend you money they need to know that you can pay them back.
• Pay Bills on time every month. Any late payments can lower your score.
• Only use 1 or 2 credit cards.
• Always pay credit cards off every month. This shows responsibility and you wont have to pay outrageous credit card rates.
• Check your credit history and dispute any claims that may be false.
• Start slow and easy and work your way up. When I was 18 I applied for a credit card with a very low limit (a few hundred dollars). I used it once or twice every month, then payed it off completely every month.

As I stated above I started slowly and worked my way up. By establishing credit with a credit card I was able to get a cell phone. That led to a purchase of a vehicle and so on. Now that I have purchased a house, new cars, and more my credit score just keeps going up. I only have to be responsible and pay my bills on time. Because of this I can buy things with a much lower interest rate. It also gives a lot of leverage in your favor. Lenders like working with people who they know will pay them back.