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How To Achieve Good Credit In Three Steps?
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What is fair credit? Is it the last stage before dropping down to bad credit or is it the last hope to get good credit score? Some cardholders say that having fair credit is something like riding a rollercoaster. For some time you steadily improve your credit history, pay in time and good credit is as near as ever! But suddenly everything fails – you make the slightest financial mistake and you are again up to your ears in bad credit and qualify only for credit cards for people with bad credit.
However, the main thing is not whether you have fair credit or not. The matter is if you are satisfied with your type of credit. It's clear that fair credit is much better than bad credit. Nowadays credit card companies offer decent fair credit credit cards with enticing options such as <a href="http://blog.creditcardflyers.com" target="_blank">no annual fee cards</a> and terms helping you improving your credit gradually. And if your aim is to get good credit sooner, it's in your hands. If you turn out to be a go-getter, you will soon be enjoying good credit with the most beneficial terms for you. There are a few practical tips how to raise one's credit and if you follow them steadily, you will never regret that.
At first it's important to see the difference between bad, fair and good credit. The FICO credit scoring system offers the following classification:
- Bad credit starts with 350 and becomes fair credit as soon as you reach 620 points.
- Earning 40 more points will allow you to get approved for good credit cards. No doubt, scoring 40 points is certainly much easier than earning 270.
Here are the three tips that will help you to raise your credit rating in the shortest possible time:
1. First of all do your best to remove errors and negative items from your credit report. For this you should contact the three credit bureaus and provide them with all the necessary data, like account activation and closing date, credit account numbers, and other information. This can improve your credit rating by 50 points or more.
2. Then you'd better open credit accounts with high credit limits and take pains to keep your balances as low as possible. Try to use it between 10% and 30% of the credit limit and make all your payments strictly on time. This increases credit rating dramatically.
3. The final action you can do is to find friends or relatives of yours with excellent credit to be your co-signer. If you attach an excellent credit history to your credit report will do good to your credit score and will add a considerable amount of additional points!
Thus, these are the methods that can help you to boost your fair credit. As soon as you earn some additional points, you won't be able to stop it! And after you get good credit, nothing will prevent you from raising it to excellent one and apply for best credit cards or zero percent credit cards! And with the above-mentioned tips it will be as easy as a piece of cake!
Sandra Paul writes about personal finance and money matters. See some of her latest articles on <a href="http://www.creditcardflyers.com" target="_blank">best credit card offers</a>. |
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| Article source: http://readers-choice.org |
 Added: Thu Jul 17, 2008 2:34 am GMT |
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