To build a credit score requires responsibility and dedication.  Credit building begins as soon as a credit card is established.  People with a great credit score benefit from many opportunities in their lifetime.  For example, the opportunity to be granted low interest loans for home and automobiles from reputable lenders.  Also, guaranteeing approval for credit card applications that require less documentation during the application process.  There also is the benefit of getting employed with a good credit score.  Many businesses determine the acceptance of the applicant by the credit history.  Following are ways to properly establish a good credit score responsibly, courtesy of Vivix Credit Solutions.

Using credit responsibly is important for establishing a credit score.  Anything that involves the use of credit will be listed on the credit report.  Attaining an initial credit card will start to set the foundation for the future of the credit score.  Start by only purchasing items that you can afford and make timely payments to the card issuer.  Try to pay the balance in full but if that is not possible then pay at least the minimum payment due.  It would be best to pay the full amount so interest would not be accrued.  Keep the purchases to under the credit limit and do not exceed the limit because that will show irresponsibility on the cardholder’s behalf. Keeping the credit card balances low will maintain the score where you want it.  The higher the balances of the card, the lower the credit score will appear.

Home and automobile loans are contracts for an amount of money borrowed with a promise for monthly payments over a specific time period.  If either type of loan is paid off before the agreed time period, the credit score does not get affected.  The benefit in lowering the amount of the loan by applying monthly payments is that there is a bigger chance of acceptance for other loans or credit.  Maintaining the payments on time on a large loan demonstrates the responsibility of the borrower.  The credit score will maintain at a good standing when timely monthly payments are applied to the accounts.

It is imperative to review the credit report frequently to insure facts are reported properly and accurately.  Reviewing a credit report will reveal any attempt of identity theft.  If an identity theft appears on the report it could affect the score in a negative manner.  Points rise when paying installment debts but making payments to several credit cards with small balances on each, raises the score.  The credit report score is affected positively when the payments to several credit cards show the payments were made on time.  Also look for misinformation on closed accounts.  These accounts will hurt the credit score, especially if there was a good longstanding history.

Building your credit score responsibly takes time and diligence.   Following steps to insure high scores will conserve good standing when applying for loans.  Also, there are benefits and opportunities to enjoy throughout a lifetime.  The demonstration of continuously making payments on time is a building block for a great credit score.