It takes time to build good credit, so you’re not going to be able to improve your credit rating overnight. The best first step to a good credit rating, is to make your loan payments and pay them on time. If you do this consistently for a number of years, you’ll end up with good credit.
You need to borrow to build your credit rating. If you’ve never had a credit card and never taken out a loan, you won’t have any credit rating at all. That could cause you problems if you eventually need to borrow for a home, business or anything else.
Having a credit card or a personal loan is a great way to build your credit rating. You can also improve your rating by taking advantage of increases in your credit card limit. Access to more credit shows you can manage it responsibly, and that’s the catch – you have to manage it responsibly. It takes discipline not to rack up thousands of dollars in high-interest credit card debt and that discipline translates into good credit.