Top Tips for a Great Credit Rating

Now, more than ever, a credit rating really helps you get ahead. Not only does it make a difference in helping you get loans and mortgages, but many jobs now check the creditworthiness of their applicants before starting the hiring process. If you have been struggling with getting your credit score up, follow these tips to help achieve a great credit rating.

1. Over ⅓ of your credit score is based on debts over 30 days old. So, if you find that you are going to be late on a payment, try not to let it go past 30 days, this will make a big difference on the impact it makes on your credit history.

2. Don’t cancel your old cards, unless you have a reason. Cancelling cards can actually hurt your score, especially if the card has an established history. If you don’t want to make the credit available to you consider shredding the card or keeping it frozen in a block of ice. Keeping the accounts open can also improve your debt to credit ratio, which makes you look like a better candidate for loans.

3. Establish credit, don’t ignore it. While paying cash for everything seems as though it would be a positive thing, not establishing credit will appear as a negative on your credit report. Even if you start small, opening an account can improve your creditworthiness.

4. Don’t apply for too many credit cards at once. Each credit check puts a ding on your report that lasts for a year. It also sends a red flag to creditors that you are facing financial troubles and may be accumulating debt. Instead, wait some time or wait for creditors to come to you.

5. While teenagers may not be responsible enough for a regular credit card, establishing a line of credit with your child can make a big difference in their ability to build a positive credit score later in life. Look into low-limit and secured cards for your teen.

6. Check your credit report regularly, but remember you can check it for free. The three major reporting agencies will allow you to check it once a year for free.

7. Do not lie on credit applications. The score is easily checked and you could run into problems down the road if you are dishonest.

8. Don’t fall for scams run by agencies that promise to repair your credit history. There is no way to do this without simply working hard and being patient.

This article has been provided by the Frugaal team. is a user-driven site which provides reviews for online stock brokers including OptionsHouse for example.