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Having a good, solid credit rating is just as important as keeping yourself free of serious debt, but it is all too easy to ignore this in the interests of virtuously tearing up all those credit cards and becoming debt-free!  The time when it was considered essential to stay completely free of debt has long gone and it is now deemed absolutely essential for people to have built up a good credit rating so that lenders can judge their creditworthiness and act accordingly.

Here are some of the benefits resulting from having a good credit rating:

Knowing that you will always be eligible for low interest loans, mortgages or indeed credit cards from your bank

.Increasing your profile to potential employers so that they can view your creditworthiness and hence trustworthiness

.Paving the way for good deals from insurance companies

.Allowing potential landlords to see your credit history and thus landing the apartment of your dreams!

It can be seen that it is essential to establish a good credit rating, as the lack of one will certainly have a negative impact on your future and is liable to send negative messages to prospective lenders, employers and estate agents or landlords. So how do you begin the task of acquiring this one all-important asset? Here are some tips to build up a solid and indeed enviable credit rating:

Make sure that you always have a little credit, whether you need it or not! The fact is you do need it to build up your future credit rating!

.Your student or car loan is sufficient, but otherwise just having one or two credit cards is all that you need

.If you can, pay off your balance in full every month. At the least, don’t forget to make your regular monthly payments and avoid late fees

.Make sure you make some occasional use of your credit card

.Remember that having a good credit score is important during all stages of your lifetime – so keep a credit card going as it’s essential for your credit report

Essential Information about Your Credit Report

Your credit report is held by credit agencies that collect your credit information, and gives you a credit score based on this. A credit score is sometimes known as an FICO score and is named after Fair Isaac Corp, the company that established the system of credit scoring. Under federal law you can obtain a free annual credit report.  This may have the credit score attached, or you can buy it separately.

The information held on an individual’s credit report includes the following:

Your personal details such as your name, address, date of birth and Social Security number

.Your credit history – this will give information concerning your debts including dates, amounts and credit limits available to you, regularity of payments and information concerning the closing of any of your accounts

.Information about recent credit inquiries

.Information pertaining to public records which include any bankruptcies, repossessions, foreclosures or liens, failure to pay child support and non-payment of taxes

So you can see how important it is to build up a credit rating or score that is going to be of service to you when you need credit at any time in your life!

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