Good credit plays an important role in huge financial decisions such as purchasing a house or car. Since these huge financial decisions are not made everyday, building good credit does not always seem too important. Here are some ways to ensure good credit:
Do not apply for multiple credit cards
Make a few purchases each month and do not use up your credit limit. Lenders typically look unfavorably at customers who max out their credit cards. Also ensure that credit card bills are paid on time. The longer you have a credit card, the more credit is built on it.
Debt is not always bad
Good debt can increase your overall wealth and nobody may expect you to pay it off immediately. This includes mortgages, car loans, etc. Just make sure monthly installments are paid on time. Credit card balances are really bad for overall credit rating and this why the result is increased interest rates.
Do an annual credit report check
Make sure the information that shows up is correct, and keep an eye for signs of identity theft. Confirm information about account balances and loan information and ensure that all your creditors show up on your report. Each year you are able to get one free credit report from national credit reporting agencies.