How to Get Good Credit: "Step 2: Build a Strong Payment Pattern
Adverse conditions such as late or non-payments are two of the most common items that are reported to the credit agencies. You can avoid adverse conditions by making on-time payments.
Your credit report will also list all open credit cards and loans, listing the amount borrowed and the amount owed on the account.
Your objective is to build a pattern where you pay off large credit card balances in full each month. This pattern conveys a sense of responsibility for your debt obligations.
You can build a strong payment pattern by charging everyday living expenses on your credit card, deducting the charge from your money account, and then paying off the monthly credit card charge in full each month with your money deductions.
Note that you need to follow these rules before you can undertake this credit payment pattern:
1. You must set aside funds for every credit card purchase you make.
2. You must pay your credit card balance in full each month.
3. You must have an existing credit line or home equity line (with lower interest rate) to finance large ticket items. Never finance purchases with your credit cards."
