9 Tips for a High Credit

Getting a free credit report is a great first step toward building a higher credit score. Here are some other things you can do to improve your creditworthiness.

1. Check your credit report regularly. To get a better idea of what your credit is like, you'll need to get your free credit report every year and review it carefully. Check to see what creditors are saying about you and if it's true. Regularly checking your credit report is also one of the best preventions against identity theft.
2. Start a checking or savings account Creditors believe these kinds of accounts reflect stability, so make sure you have one or both of them.
3. Learn what your credit score means. Credit scores are determined primarily by two factors: the timely payment of your bills and your balance-to-credit ratio. Paying your bills on time is self-explanatory and crucial. Your balance-to-credit ratio means how much of your credit limits you're actually using.
4. Think about leaning on someone else's credit until you get on your feet. Having someone with good credit authorize you as a user of a credit card account can do wonders for your credit. You also can improve your credit by having someone co-sign on a loan with you.
5. Apply for credit as early in life as possible. If you have a limited credit history, you need to apply for credit to begin building your creditworthiness. Ideally, you should have your first credit card around the time you are of college age (18-19). Don't apply for too much credit at once, though, as it will hurt your score.
6. Think about applying for a secured credit card. If you don't qualify for an unsecured credit card, apply for a secured card. Secured cards require you to make a deposit when you apply that usually represents your credit limit. Be careful when you choose your secured card. Make sure that it reports to all of the credit bureaus, turns into an unsecured card after 12-18 months of paying on-time, and has no application fee and a low annual fee.
7. Get a credit card from a finance company. Credit cards issued by finance companies, such as gas cards or department store credit cards, are often easier to qualify for than regular credit cards.
8. Take out an installment loan. To diversify your credit, you'll want to take out some type of installment loan, such as a mortgage, personal loan, or car loan.
9. Use your revolving accounts consistently but lightly. Keep balances below 30% of your limit, pay on-time, and don't charge more than you can afford to pay off in a month.

4 Steps to Better Credit