Establishing Good Credit

Today you need a good credit rating to buy a home, get a good job or a preferred rate on your homeowner's or life insurance policy. Establishing credit and monitoring your credit ratings are two of the most important financial tasks you may face. Fortunately, it's not difficult. But it's just as easy to get off on the wrong foot if you don't know the rules. Maintaining your bank accounts can reflect on your credit history. If the bank has to charge off a negative account balance or delinquent loan reserve it can affect your credit report. Businesses can also report money lost as a result of checks that could not clear from a bank account. In order to achieve good credit, ensure you: Maintain good records on your checking and savings accounts; make sure to balance them monthly. Get a copy of your credit report. Establish a credit card in your own name, jointly if married. Pay bills before the due date Limit the number of open accounts. Don’t run up balances to the limit.