six simple rules of credit

1. Pay your bills on time, plus mortgage or rent payments.When applying for credit this will be checked and if good, will count in your favour

2. Get credit early. Having good accounts which have been running for years is good. If you avoid credit, and cards then set up automatic monthly payments for regular payments like furniture rent, utilities and phone. They need to check how you behave they don’t know your history. You need tracable history.

3. Dont max out lenders.

This means don’t apply for two many cards or accounts at once, or too many requests for credit reports in the same period, this will make lenders nervous.

4. Check your credit history before the big day when you apply for a car loan or morgage check the score before, there may be address mistakes or records on accounts that are now settled. It’s harder to straighten out once you’ve scared off the lender.

5. Do you know your three digit Fico score? In March of 2001, the secrecy of credit-scoring was opened up. Now , you can see your three digit score ( based on a formula developed by Fair, Isaac & Co. FICO), this defines your credit-worthiness. It can range from 300 to 850 and above 750 is considered average.

6. Know who can ask and what they get.

record of all late payments (30 days or more) to anyone – from phone company to banks and mortgage lenders.
• Public records – Bankruptcies and other court judgments, like alimony agreements and outstanding tax debt
• Inquiries – A dated listing of all recent business requests to see your file.

N.B. You may see your own credit file, without it being recorded or counted.

Moneypenny