There are three major things that have an extremely pronounced effect on your credit rating. Want to know what they are? Keep reading, because I’m going to lift up the curtains and tell you exactly what you need to know.

Many people are completely stumped when it comes to their credit rating. That’s a bit sad, considering how important this number is in our society. Do you wonder the answer to simple questions such as can paying your improve credit? Paying regular household bills such as your electricity does not build your credit, but paying your credit card bills certainly does.

Your history of paying your credit cards on time is crucial if you want to have a good credit score. No one likes to part with their hard earned money every month, but the truth is that it is almost impossible to have a good credit score with too many late credit card or loan payments on your record.

After paying your credit card payments on time, the best thing you can do for your credit score is to try and keep your balances on your credit cards as low as possible. Think about it; would you want to loan additional money to a friend who was already up to his ears in debt? Neither would your lenders.

Finally, the overall age of your credit history is an extremely important factor in determining your credit rating. This is not something that many people consider, but it is a very real factor that says a lot to lenders about how accurate your credit report actually is.

Those three factors are not the only things that will determine your credit rating, but from my experience those three things are all you need to focus on if you want to establish a healthy credit profile.

Don’t over complicate this. To maintain a healthy credit score, simply pay your credit card bills on time, keep your balances down, and keep your accounts open for long periods of time. By following that simple three step method, you will begin to build an extremely potent credit rating, even if it takes a few years.

Sometimes, you may be in a situation where your credit rating is already damaged. If that sounds like you, then you should look into a service like Lexington Law.

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