As a purchaser you've learned the seriousness of establishing a good credit rating with your banks. Whether you are buying a new home or car, or searching for the best deals on insurance, your credit suitability will be judged by your credit status or credit score.

A blemished credit history or blemished credit habits will place “black marks” on your credit profile. These include things such as overdue payments, having an account assigned to a repo man, and of course insolvency.

Establishing excellent credit habits and therefore an excellent credit rating will improve your credit suitability. This will be mirrored in potential lenders offering you substantially lower rates and more interesting deals on credit offers.

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

1) Pay Your Debts On Time

Banks only have your past payment history on which to decide the kind of credit risk you present to them. How you pay off your dues now indicates to them how you may pay off future debt.

2) Don't Use Too Many or Too Few Mastercards

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

3) Pay At Least The Minimum Due

Always pay perhaps the minimum due payment, but never less. And remember, just paying the minimum payment means it will take you years and years to repay that Mastercard.

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

4) Review Your Credit Score Frequently

Study your credit history from all 3 major credit firms – Experian, TransUnion, and Equifax – on a regular basis. Check your credit profile at least yearly. Review it carefully and make sure that any past cock ups or disputes have been corrected.

Also, if you happen to notice an account listed that you know that you haven't personally opened, contact that creditor and the credit firms immediately. This should be a hint that you've had your identity thieved. Request to have a fraud alert placed on your profile and account to protect yourself and your credit. I. D. theft is the swiftest growing consumer crime in America, with an approximate 1 million people victimised annually.

Build great credit habits early on in life and reap the benefits that your good credit rating will provide you for the remainder of your fiscal future.

Learn the steps I used to fix my credit.

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