The Key To Building A Good Credit Score
Looking for the best way to build your credit or getting a great credit score can seem so difficult. Mainly because there are so many opinions on how to do it.
I like to stick with the old motto K.I.S.S ….. Keep It Simple Stupid…. I can still hear my middle school teacher telling my class this every day. Look guys, its simple….
A credit report is just like a resume. When you apply for a job, you hand the resume across the desk to the interviewer. If the resume shows that you have a good degree, good references, and lots of diverse work experience, you will impress the boss and get hired!
A credit report is no different.
Instead of for a job, you are asking a bank to extend you a line of credit. So when the banker looks at your credit report, you want to have a good credit score and a DIVERSE credit report.
You want to show the banker that you know how to use all 3 types of credit responsibly; real estate, revolving, and installment.
For example, if you only have a mortgage and/or a car loan on your credit report, but no credit cards, that does not impress a banker. After all… EVERYONE has to live indoors and drive to work.
To DIVERSIFY your credit report and BUILD you credit, add a credit card to your “resume” and show the banker you’re just as disciplined with a $5,000 credit card.
Will you max it out? Will you pay the payment on time? How much of a balance will you spend in relation to the amount of credit that was extended to you?
These are some ideas to keep in mind while going through the building phase. If you would like access to guaranteed approvals or more information on the exact steps of how to build a great score, give BNBCREDITBUILDERS a call for a free consultation!