1. Obtain your credit report.
You can check your credit report for free at www.creditkarma.com. It’s good to review your credit report at least once a year, especially before you prepare to purchase something major.
Knowing your credit score can help you out in the long run. The higher your score, the lower risk you are to creditors. This means that you’re more likely to receive credit from a borrower than if you had a lower score.
2. Provide accurate information
When applying for new credit you have to provide accurate information. This includes your personal information such as your social security number and your income. This will minimize the chance that your credit application will be incomplete or denied.
3. Live within your means and budget
Don’t use your credit to live outside of your means or for everyday expenses, unless you have no other option and it becomes necessary to do so.
4. Don’t get too much credit
You want some credit, but you don’t want a lot of open credit. Having no credit history can really make it tough to qualify for new credit and loans. You won’t need a lot of open credit, but having a couple of active accounts will make all of the difference when applying for a new loan.
5. Pay you bills on time