How to Establish Good Credit with AAA

Having good credit is beneficial because it allows you to apply for better home loans and receive access to better mortgage deals. You also have a higher limit on the amount of credit you have.

The best credit score would be in the 700s or 800s. Anything below this range would be either problematic or not ideal under any circumstances. Thankfully, there are ways you can do this if your credit rating is not what it should be.

Here are some tips on how to establish a better credit score:

1. Don’t have just one type of credit account. A credit score is determined by what type of credit accounts you have on file. Some accounts you should consider opening are credit cards, store cards, mortgages, etc. To have a credit score, you need to start buying things on credit.

2. Never be late on your payments! If you start missing payments, you will accrue debt and your credit score will rapidly decline. A person who has a long credit history with on-time payments will have a good score and looks like a good candidate for a home loan or mortgage. A late payment occurs when 30 days have gone by and you have not paid off the amount due.

3. It’s never a good idea to have too many credit accounts. Try to only apply for those that you feel like you could actually use, like just one credit card instead of three. In your credit score report, the age of all your accounts is averaged and usually the longer average age, the better the credit score will be. Applications for new credit accounts also have an effect on your overall credit score.

4. If you have revolving debt balances, it is probably best to pay those off as quickly as you an. This kind of debt stems from credit or store cards. The higher this type of debt is, the more use it shows on your credit cards. This could you denied if you want to apply for new credit.