Credit building is the road map to credible credit history. The top credit building tips provided in this post are straight from two credit counseling experts.

Here’s what these experts has to say;

• Make your payments on time; put simply, timely payment is your credit score’s highest weighted component – it accounts for nearly 40% of the score, according to one of the consumer credit counseling experts.

“If you are not organized, or perhaps a procrastinator, or someone who is usually away when your bills are due, employ an automatic bill payment system featuring an amount that can take care of your minimum payment (at least) exactly on the due date”, said Raymond a credit consumer counselor.

• Request for your credit reports regularly; do this at least every other year, or 90 days prior to credit or loan application. You have the right to dispute inaccurate entry on your credit report. Ensure that each entry to the last dot represents you accurately.
• When you decide to close unused accounts, do it carefully; perhaps you’ve got a couple of credit cards paid off and you have no intention of using them again, it would be best to keep them open.

“Your overall credit would become lower and your credit utilization ratio will be affected when you suddenly close unused accounts” said Julia, the manager of a renowned consumer credit organization in Miami.

• Avoid maxing out your credit; determine not to go beyond 30% of the credit available for use. This would keep you off expensive fees and placement in risk category. Again, paying down your cards is an excellent credit building practice that would boost your credit history. You are likely to experience significant improvement in your credit score when you pay down your cards. This is because the computation would take cognizance that you were able to pay your debt with ease.
• Form the habit of not paying in credit; the logic is simple, if you use cash more often to pay for your needs, you are more likely to stay within your budget and spend only what you have. Prudence in finance management is an essential practice on the way to building a clean credit history. As you improve your spending habit, your credit score will also improve.

If you can keep common credit mistakes at bay, you will experience significant change in your credit score!