How to improve your credit score when you are starting off

Mar 27 2010

The types of credit mainly used are the ones relating to Car Loans, home loans, and personal loans and so on. Strangely, it has been noticed that the more credit exposure in terms of the variety of credit that somebody enjoys, it is better for their credit score as long as they can pay off in time. The fact that the person has managed to clear his outstanding on time despite the usage of various credit options is the factor that works in his favour and lenders see him as a low risk customer. This in turn leads to a better credit score.

If you are one of those just starting off and keen to make a positive impression, then make sure that you take varied types of credit exposure and pay them off within the stipulated period to notch up a good credit score. You need to set a track record of doing this successfully over a period of six months to gain a good reputation.

Needless to say, any default can severely impact your reputation and your credit score as well and this can be a very bad start.

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