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Credit score affects your loan prospects - 9. Step 4: How to establish hight credit score.
You may not realize it, but if you have recurring bills such as rent and utilities, you already have a credit history. If they are paid in a timely manner, rent, car insurance, medical, cable television and telephone bills are all indications that you are a good risk. Keep copies of the bills and your canceled checks, and ask your Landlord, insurer and power company to write letters on your behalf stating how long you've been a customer, two years or more is best, and that you pay on time.
If you don't have checking and savings accounts, your next step is to open them and make sure you follow the rules by keeping adequate minimum balances. Then apply for a few Credit Cards. All you need is a bank card, one from a local department store or a national chain and a third from an oil company for gasoline charges.
Search for the Credit Cards with the lowest credit fees and crewdit rates, and use them wisely to establish a Credit Record on timely payments. Don't charge more than you can afford, and make more than the minimum payment every month to maintain low balances. If possible, pay each bill in full every month.
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