In the US, credit scores are linked to each person’s social security number. These numbers that range from 300 to 850 are crucially important since they may influence your ability to get car loans, mortgage, to finance your education and even prevent you from getting a job. Banks, lending companies and even employers usually check your credit rating in order to find out whether you are a trustworthy and responsible person. However, there are several things that can help you manage a good credit rating and improve it in the future.

Repay Your Credit on Time

To build a credit rating in the mid- to high-700s that is considered a great one, it is necessary to remember the most important rule – always pay your credit debts on time. Of course, you may simply be busy and forget to repay, but the lenders will not take such things into consideration. Late payments as well as failure to repay your credit will have a devastating impact on your credit score. However, you can make your life easier by arranging automatic monthly payments with your credit card company or bank. The money will be simply withdrawn from your account and all you need to do is to make sure that you always have funds available on your account. Thus you eliminate the risk of forgetting to pay the debt and dropping your credit score.

Check Your Credit Record for Errors

It may sound surprising but errors often appear in credit records, mostly because people often share the same names. In order to keep your record secure from such mistakes it is necessary to review it from time to time and make sure that this is you who are actually responsible for all of the things appearing on your credit report. Note that you can get one free copy of your credit report annually. If you find any inconsistencies such as accounts you didn’t open, reports of late payments that were in fact paid on-time, or any negative information older than 7 years, feel free to report about them to the credit agency.

Don’t Apply for Many Credit Cards

Lots of people mistakenly think that in order to build a great credit score they need to open multiple accounts and start applying for many credit cards. But it is necessary to keep in mind that each time you apply for credit, this is reflected on your credit rating. If lenders see a surprisingly high number of applications, moreover, if some of them have been denied, they may think they deal with a “credit seeker,” which is an undesirable label for someone who wants to maintain a good credit rating.

The Less Credit, the Better

The most important thing that affects your credit score is the so-called credit utilization that reflects the ratio of current revolving debt to the total credit limit. So it is recommended that you do not use the entire amount available on your credit card. It is wise not to use more than 50 percent, and it is even better if your expenses do not exceed 30 percent of your credit limit.

Open a Bank Account

Lenders and employers often see bank accounts open in your name as the sign of your responsibility and trustworthiness. Having a bank account also makes an impression of financial stability and consistent savings behavior. Another useful tip is to have an apartment, phone number, and other utilities registered in your name and pay all the bills on time. This may also increase you chance of being approved for a loan or getting a credit card.
However, sometimes building a good credit history may resemble a chicken and egg problem. Lenders are reluctant to offer credit to people with no credit history. At the same time in order to build one you need to take credit. If this is your case, short-term loans may become a solution. Lenders usually provide such loans even to people with no credit history or with a bad one. You may ask your lender to report about such a loan repaid on time to a credit agency. This will make it easier for you to get credit in the future and will facilitate building your good credit history.