Got good credit? Here's how to get it

Experts can debate the cause of the recession for years, but consumers are feeling the pinch right now through the reduced availability of credit. If you are in the market for a new home, a car or even a cell phone, it is more important than ever to make sure your credit is in great shape.

Whenever you apply for any loan, an apartment or even a job, your credit is scrutinized to asses if you are a "good credit risk." If you have a low credit score or a rocky credit history, you will see it in higher interest rates that can cost thousands of dollars more than someone with good credit.

The first step to keeping your credit in good shape is to check your credit report. Some things to look for include:

* Errors on your report
Credit report errors are surprisingly common and can take months to correct. Regularly monitoring your credit report can help you catch mistakes early.

* Debt-to-credit ratio
If you are maxing out your credit cards, lenders take this as a sign that you are borrowing as much as, or more than you can handle. Keep your balances at least 50 percent below your credit limit.

* Late payments
Making all your payments on time means you avoid a black mark on your credit report and can save you hundreds of dollars in late fees.

* Old accounts
Consider leaving old accounts open even if you don't use them much anymore. The length of your credit history is a factor in your credit score so it pays to keep accounts open.

Checking your credit report with a service like FreeCreditReportInstantly.com means you will instantly receive your reports from the 3 credit bureaus as well as credit monitoring and alerts.

When you sign up for credit monitoring, an authorized agency will notify you whenever an update is made to your credit report. It's a great way to keep track of your credit standing and you don't have to remember to check your credit report and score several times each year. Credit monitoring is also a good way to catch identity theft early.


Sign up today at FreeCreditReportInstantly.com to get your free credit reports and scores with your Free Credit Diagnosis trial. Don’t wait another day to make sure your credit is in top shape. Sponsored content provided by ARALifestyle. Copyright © ARAnet, Inc.