Boosting
your credit score is another
warm up for the heavy lifting you
need for a mortgage, among other
things. It's a chicken and egg problem,
though. Lenders loan money more
easily and at lower rates to people
with good credit scores, but you
have to borrow money (in one way
or another) to get a credit score
in the first place. With a little
time, you can build a good credit
score from scratch and then save
hundreds of dollars a month from
the lower interest rates and insurance
premiums you'll enjoy.
Paying
your bills on time is a huge
part of your credit score, so
you can get started just by being
prompt. Credit cards are easier
to get than loans, so you can
apply for one or two to start
beefing up your credit score.
The key is to keep your balance
well below the card limit and
pay those credit card balances
off on time.
If earlier credit
behavior damaged your credit score,
you can nurse it back to health
with a slow and steady rehabilitation
program. You'll start to see progress
after two months, but bringing
your score back to perfect health
can take six months to several
years.
