How to Build and Maintain Good Credit?

How to build and maintain good credit?. We'll give you some strategies to start building your credit history. You can start by opening a checking account, but be careful so that no checks returned by the bank. You may establish your credit by applying for a credit card or a card from a department store. You can also start establishing your credit by applying a small loan. If you think a loan, there are several things you must consider. In the ideal situation, you can:

Identify various entities and lending institutions.

Evaluate the terms of the loan.

Knowing how to calculate the cost of credit.

Determine your own debt limit.

Read and understand the credit agreement.

The table below you can see some possible questions you will extend yourself creditors before a line of credit

» Been using before any credit?

» Do you pay your bills on time?

» Have a good credit report? 

» Can you give a personal reference?

» How long have you been at your current job?

» How long have you lived at your current residence?

» Have savings account?

» Do you have some capital that you can use as collateral?

Table above. These questions help creditors to evaluate how you handle your finances and determine if you can handle other credit obligations.

Correcting an error in your credit report

If there are any errors in your credit report, the credit bureau is required by law to correct, as long as you report the problem in writing. Remember, it is assumed that the report contains information and say exactly what is good and bad. If the investigation of your claim does not lead to a satisfactory result, you can send the bureau a written statement explaining the situation again. Be sure to include photocopies or other evidence you have to support your claim. In many cases the credit bureau must include your statement in future reports that contain the disputed information.

Beware of those promises of "quick fix" real credit problems

If you're behind on a payment, you have paid a mortgage or you have taken a house for nonpayment, this information stays on your report for seven years. If you have filed bankruptcy, this information may remain on your credit report up to 10 years. Some companies promise to "fix" these problems in exchange for a fee. However, it is legally impossible to alter a credit history that is true. If you're in a bad economy, you better work with your budget and your creditors to re-establish your good credit.

Some truths about credit bureaus

Credit bureaus are independent agencies that collect personal credit information about consumers and distributed to lenders.

Tips for maintaining good credit

Fill out credit applications carefully and always use the same name.

Use your credit cards responsibly to establish a positive pattern of paying bills on time, but do not spend to the limit no more than it can afford.

Pay your bills on time and send at least the minimum payment.

If you move, your new address information to creditors as soon as possible to avoid misplaced bills or you arrive late.

If you have trouble paying your bills, contact your creditors. In many cases work with you to establish a payment plan.