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Tips for Good Credit

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What does a good credit rating mean?
A good credit rating indicates to others that you manage your debts responsibly and are likely to pay back what you've borrowed.

Even if you feel you won't need good credit for many years, it's never too early to start some habits to keep your credit rating healthy. Here are some reasons you should start establishing good credit today:
  • With good credit, you'll find it easier to get financing to buy furniture, a computer, car, or even a new home.
  • Renting an apartment may be easier. A good credit rating tells landlords that you are a person who's more likely to pay the rent on time.
  • Employers often check the credit rating of prospective employees. A solid credit rating reflects positively on your ability to manage your job responsibly.
  • You may be eligible to receive loans for education costs.
  • If you need access to funds, banks may look more favorably upon giving you the loan you need.
  • Strong credit references can open a world of financial opportunity. Someday you might want to use credit to finance a business.

What you can do
Good credit will follow if you're smart about managing your money. By taking these simple steps, you can stay on top of your finances and maintain good credit for when you need it.
  • Stick to a budget. Manage your debt by tracking your spending and sticking to a budget.
  • Keep track of your spending. Keep track of the checks you've written and track what you owe. Promptly review your monthly account statements for accuracy and be sure to report all discrepancies immediately.
  • Pay what you owe on time. Pay at least your "Total Minimum Due" by the "mail by" date on your monthly statements to keep your accounts in good standing. Don't skip any payments. Try to pay more than the minimum amount due or even pay off the whole balance each month.
  • Don't exceed your credit limit. Your "Available Credit" is how much credit you have left (your Credit Limit minus your Outstanding Balance). You should always keep your outstanding balance lower than your credit limit. It's a good idea to keep at least a 15% cushion of Available Credit in your account in case of emergency.
  • Use available resources. Contact the NFCC (National Foundation for Consumer Credit) for additional suggestions on maintaining good credit.
  • Apply for products that can help you build your credit. One example is a Wells Fargo Secured Personal Loan. This account can help you get started if you don't have much credit history right now. It works by using a Wells Fargo Time Certificate of Deposit (CD) for collateral. You open a Wells Fargo CD for $3,160 and a Secured Loan for $3,000. At the end of the CD and loan term, (12 months or more) when you've paid off the loan, the CD is released back to you with the interest you've earned. Now you have an installment loan in your credit history that was paid as agreed, which increases your chances to obtain unsecured credit in the future.
Your credit report
You should check your credit history at least once a year. It's easy to order your credit report from a consumer reporting agency -- Equifax, Experian or Transunion.

Your credit report contains personal and employment information, payment history, and records of filed bankruptcies, lawsuits, or liens. It also provides details of inquiries made about your credit rating (e.g., by a potential landlord). Most credit information remains on file for seven years.

When you get your credit report, if you see anything wrong, call the credit bureau immediately for more information.

Choose the personal credit account that's right for you
Wells Fargo has several personal credit accounts. View our personal credit line and loan account options to see which one best fits your needs.
Call to Apply1-888-667-5250