Delray Beach, FL (PRWEB) July 7, 2010
When it comes to your credit report and score, no news is not necessarily good news. According to NationalCreditReport.com, a leader in credit report, credit score and credit monitoring services, it is important for all consumers to have a credit history.
"Having no credit history can actually hurt you because you aren't giving the potential lenders that check your credit report any indication that you can use credit responsibly," said Samuel S. Ambrose, Vice President of Marketing and Operations for NationalCreditReport.com. "Simply knowing how to build up your credit report puts you on the right path to getting a good credit score and being viewed favorably in the eyes of creditors and lenders."
Ambrose notes that your credit history can also be viewed by potential landlords, employers and insurers.
Tips on how to build up your credit report:
1. Know what is included in your credit score and how it's calculated.
A credit score is the numerical value that represents an individual's credit worthiness. This figure is calculated by the three major credit bureaus (Experian™, Equifax™ and TransUnion™). Creditors and lenders check your credit report for your credit score and use it to make lending decisions. Getting a good credit score hinges on making timely payments, wisely using credit limits and having a longer credit history. A person with a higher score is more likely to be extended a larger line of credit or a lower interest rate.
2. Get a bank account.
Being responsible for a bank account shows lenders and creditors that you can manage your finances and are ready for a credit card.
3. Apply for a credit card, but be smart about it.
The easiest time to do this is when you are still in college because student cards are often easier to obtain. Another option is a secured credit card which requires you to make a deposit, the amount of which will be your credit limit. Finally, you can apply for a store credit card. These cards usually have a lower limit and are easier to obtain. However, applying for several credit cards at once will work against your effort of getting a good credit score because too many inquiries at one time can cause your score to drop
4. Consider a co-signer.
When applying for credit, your co-signer's credit is taken into consideration and may help you secure your first credit account. A co-signer is usually a family member who is willing to help you build your credit. However, if you do not make payments on time or become unable to pay, your co-signer will be entirely responsible for the debt.
5. Check your credit report.
After several months, check your credit report to see your progress and growing score to explore whether there are other areas you should improve.
Since 2004, NationalCreditReport.com has specialized in providing credit information and credit monitoring services to consumers to help them understand their credit report and score. NationalCreditReport.com encourages consumers to check their credit report on a regular basis.