Building good credit habits and therefore a good credit rating will improve your credit worthiness.   This will be reflected in potential lenders offering you substantially lower interest rates and better deals on credit offers.

Here are 4 tips to help you create a shining credit profile:

1) Pay Your Bills Every Month

Lenders only have your past payment history on which to decide the type of credit liability you present to them.  How you hancle your finances now indicates to them how you will pay off future debts.

2) Don’t Use Too Many or Too Few Credit Cards

How much is too much ? How little is too little ? Many credit experts and financial planners suggest two to four credit cards is just the right mix.

3) Pay More Than The Minimum Amount Due

Always pay at least the minimum due payment, but never less.  And remember, just paying the minimum payment means it will take you years and years to pay off that credit card.

Example: Paying off a $2,000 credit payment at 18% APR with a minimum monthly payment of 2% ($40 dollars or less) will take you 30 years to pay off the amount plus interest.

4) Review Your Credit Report Regularly

Monitor your credit report from all three major credit bureaus – Experian, TransUnion, and Equifax – on a regular basis.  Check your credit profile at least annually.   Review it carefully and make sure that any past mistakes or disputes have been corrected.

Also, if you notice new accounts listed that you know that you have not personally opened, contact that creditor and the credit bureaus immediately.  This could be a sign that your the victim of identity theft.  Request to have a fraud alert placed on your credit profile to protect yourself and your credit rating.  Identity theft is the most costly and fastest growing consumer crime in America, with an estimated 1 million people victimized each year.

Establishing good credit habits early in life and you can reap the benefits that your good credit rating will provide you for the rest of your life.

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