How to Build a Good Credit Score

November 8, 2009 by Tony
Filed under Debt Free Living

: Image via Wikipedia

Credit can be a booby trap. On one hand we are marketed to death about the benefits of having credit and at the same time we are advised about it’s ‘many pitfalls. Credit,despite it’s negatives, can be managed to work for you in the best way possible. Keep in mind that the banks will always have the upper hand and they will always be quick to add charges to accounts when they feel that there is an opportunity to do so – and don’t give them the chance to do it. Do you really believe it cost them that much handle a late payment. It probably costs them next to nothing. It is an exceptionally easy source of revenue for them so that are very quick to add the charges. Yoou can control the situation so make sure you are in the driving seat.

You can take control by making payment in a way that the bank will not recommend. The ‘monthly’ payment on your credit card will usually be set at a small percentage of the balance, and the bank will be happy for you to only ever pay that, because you will pay them much more than you boorowed. It maximizes the interest. They pick in fees much more this way and it makes their stock holders very happy. You can stop this and manage this in your favor by making more than the monthly payment.

When you take out a credit card, use it as you would use an ATM or debit card. Pay for groceries with it when you get your wages at the end of the month, and then instantly pay the balance off in full. For a while, live off credit and use the money that goes into these costs to make payments to your card. Your credit rating will soar. Your bank will offer you better terms. You�ll be in the driving seat.