Let their new behaviors be known

• It is important to tell a borrower to get a novel credit line that will then be made known to the credit bureaus.
• Make loans and ensure they are reported.
• Encourage customers to make credit purchases from creditors who report to certified credit bureaus.

Remain Active

• A credit line is considered to be active when it shows monthly activity for at least 6-12 months.
• Ensure open installment loans like car or student loans are paid consistently. A loan that was closed say 6 months back is not considered active.

What is the perfect way to ensure a credit card is active? There are two ways. One is by making purchases for a single commodity or service at a time and making consistent payments in the course of a number of months. Alternatively, it may be wise to make purchases at least once a month and pay for it fully before the duration expires. The latter method does not incur interest but both choices help to maintain active credit.

Can one purchase an asset in 24 months? The credit-building loan that lasts half a year will do the trick. In case one ceases to be on active credit the loan will be over in eighteen months. Maintaining a credit score that is beyond reproach entails building assets by having a minimum of two credit lines, each time one seeks a mortgage. One should not forget that open active credit plays the same role as a credit card because it has been facilitating constant remissions, in the past one year.

Keep timely payments!

• Credit advisors ought to guide customers on the best way to keep their scores afloat by remitting dues on their active credit, every month. Within a span of half a year or one full year, the score will have improved a great deal.
• When one pays on time, he or she reduces interest and other surcharges, thus keeping bank savings intact.
• Active credit demands perpetual remissions per month.
• It is a rule of thumb to remit the minimum amount before the set date.

Maintain a diverse portfolio

• Advise clients to open another credit line or loan from different lender.
• Collateral or revolving loan with balance starting $2500 is required for certain mortgage options.

Avoid THIN credit files

• A single or even two credit lines are considered THIN by credit bureaus.
• Thin credit files can lower the score or result in no score at all.

Use Savings as buffer for settling old dues

• Lenders will always prefer less amounts for a long-standing debt, than none at all.
• Insignificant remissions in the recent past may not improve the score, until they improve over continuous payments and CBA reporting.
• If one pays duly the whole overdue balance, the lender could facilitate the removal of bad credit tag.

While committing to the above approaches, it is important to know that reporting CBA is voluntary and it costs money to do the same to credit bureaus. Creditors may not really keep your records up to date. Aging credit on the other hand is less harmful than present credit.

Avoid maximum offers.  It’s wise to keep credit balances below 33 percent of the entire credit limit, and under 50 percent at all times. This protects against low scores.

Retain certain creditors

• A longer credit history is normally considered advantageous.
• Do not shut down past credit lines for low-rated fresh ones as this reduces the score.

Visit several shops to compare rates

Making inquiries on lenders for the same loan within 30 days goes on record as a single query.

Seek other outlets

• Remitting domestic bills including rent, will improve loan accessibility.
• Credit documents should remain the best way to show timely payments to lenders.
• Applying for fresh credit scores can be done at authorized website.

Know how credit rates operate

• Lenders and credit card companies get their money through late payments and fees. Be sure to understand their terms.
• 15 percent interest rate on say a 14-day pay day is in reality 390 percent, on the Annual Percentage Rate.

Indeed, 91 percent of pay day loans’ returns for creditors are from overdue payments.

Create rapport with the three major credit bureaus.

• Loan officers should advise their applicants to be up-to-date with the three major credit bureaus of the US. They can rotate and receive reports on quarterly basis.
• In case of errors or even ill repute, customers ought to get in touch with the lender. Who knows but the lenders may even erase an entry on late remission!
• In case the above steps of rectifying mistakes does not happen, one may go directly to the CBA to have the error fixed. The rectification happens after one month of the application.

All the above derive from the credit score, which again shapes up from several interrelated payment history factors.