What is a credit score?
A credit score is usually derived from a person’s credit report. The credit report will show your credit payment ability.
Get a credit card
Getting a new credit card will be the first step to build up your credit rating
Being a good paymaster
Make it a habit of paying your bills and commitments on time before it’s due.
Ensure there’s activity on credit record
Ensure you have payment activity on your credit card and taken any instalment or personal loan to build credit history.
Have credit diversity
Have a diverse list of different loan & accounts in your credit score (ex: credit card loans, personal loan, car loans, etc).
Don’t buy something u can’t afford
Buying something that you can’t afford will eventually become a debt that you can’t repay on time. Which will lead to lower credit rating.
Don’t max out your credit limit
For instance, your credit card limit is RM5,000 and you maximise your spending every month, your credit rating might be negatively impact due to high debt utilisation ratio.
