When you have a good credit score it means that you can be trusted; you are responsible in managing your finances.You can enjoy the benefits of getting lower interest rates on credit cards and mortgages when your credit rate is excellent.Therefore in order to take advantage of these benefits you must start building a good credit rating.How should you do that? Here are the best kept secrets banks don't want you to know.1.File for a loan from banks of your choice.Yes you've read it right! You can begin doing this with three banks, but if you can handle the interest payments then you may go for more banks.Inform the banker that you are building credit for your business.Make sure that these banks create reports to credit agencies because if they don't, this wouldn't make sense.2.Now that you have money, deposit part of it in a three month CD (Certificate of Deposit).$1,000, or higher is the best value you should invest.Repeat this process with the rest of the banks you filed a loan from.CD is like a time deposit wherein you can't withdraw the amount you deposited until the maturity date.However, a Certificate of Deposit offers bigger interest rates compared to other investments.3.Do not deposit all your money into a three month Certificate of Deposit.Take some amount to open a savings account at the banks where you also acquired your certificate of deposit.Once you have it, be sure not to withdraw these deposits.4.After 3 months, withdraw your CDs.At this point you have gained enough good scores on your credit report through the banks you are affiliated with.But you have to be careful with CDs because banking institutions impose penalties to those who could not meet its terms and conditions.So the best way to stay away from being hassled is to wait until your certificate matures-you can do whatever you want with your investment thereafter.5.The last thing you have to do is to pay your loans using the money you invested into the 3-month CD.Cash in the CD so you no longer have any liabilities in these finance companies.Easy steps right? Hold on to these simple steps.They are effective tools of debt elimination.With these steps handy, you'll build an excellent credit rating in no time.

There are a variety of credit card types, each claiming to offer you the best possible deal.Finding the programs and incentives that works best for you is key to maintaining a good credit card history.Each type of credit card offer different benefits.Some are geared toward the individual consumer, while others are set up to work for small businesses.To find the type of card that best fits your needs, let's review some of the options.Business Cards.A business credit card offers the business owner an opportunity to keep business and personal expenses separate.The card may offer special business rewards and saving opportunities that go above and beyond what the individual card owner has.Since money management is essential for running a business successfully, this card may offer an expense management service that helps track outgoing money.You can obtain additional cards for employees who may need them for travel expenses and such.You may also have a higher credit limit than you normally would on an individual card.Student Cards.Many credit card companies will issue student cards with lower credit limits and fewer incentives, helping new card users to keep their spending in check.However, note that many college students now graduate with credit balances averaging from $3,000 to $7,000.With high interest rates, these debts can be a real problem to pay off.Debit Cards.Prepaid debit cards are 1 type of credit card that has grown significantly in recent years.Although it works like a traditional credit card when making a purchase, that is where the similarity ends.With a prepaid debit card, you actually set the credit limit yourself by depositing money into the debit card's account.The amount you deposit determines the credit limit on that card.This is a great way to have the convenience of a credit card without the possibility of charging more than you can afford to pay off.Cards for Bad Credit.Even with bad credit, it is possible to obtain a credit card.These cards come with some restrictions not typically found on other types of cards.Your credit limit will be lower and your interest rate higher.Some may require you to have a secured card, meaning you have to maintain a savings or some other type of account that will cover the expenses on the credit card.Once you have established that you will be responsible in your credit handling, some, if not all, of your restrictions may be lifted.Cash Back Cards.Many cards will now offer you cash-back incentives for using their cards.Depending on how much your balance is, and how often you use the card, you can earn cash back for your purchases.Some companies offer 1% off your balance while others, like Sears, will offer you cash off purchases made in their store.Either way, if you are planning on using a card, finding one that will offer you a cash incentive is a smart choice.Low-Interest Cards.One of the more recent additions to the credit card world is the low-interest credit card.These cards offer a significantly lower interest rate than most of the older cards you may already have.As balance-transfer cards, most of them offer you the option of transferring a balance from a higher interest rate card and, for a specified period of time, your transferred balance will be at either 0% interest or something quite low.This can save you a fair amount of money if your plan is to pay it off.Reward and Incentive Cards.Since credit cards have become such a lucrative business, many corporations have jumped on the bandwagon.Even airlines now offer credit cards that come with a certain amount of frequent flyer miles attached, depending on your balance and purchases.If you do a fair amount of traveling, this can be a real bonus.Along these same lines, reward credit cards are growing in popularity.Competition is stiff, and many card companies are now offering different reward or incentive options for using their cards.Once you accumulate enough points, the rewards pour in.These can be anything from travel insurance to small appliances.If you use a card regularly, finding one with a reward program can really pay off.Instant Approval Cards.Another form of credit card is the instant approval card.Once you fill out the application, a quick background check will be done and you will have your approval almost immediately.Regular cards can take up to 2 weeks to process.Although you can get instant approval, this does not always mean you can get instant credit.Some companies will supply you with a temporary credit card number and allow you to begin making purchases immediately, while others will not, due to an increase in credit card fraud potential.Protect Your Credit.Since there are so many options in choosing a credit card, you should do a little research before you apply.Decide what type of card best fits your needs and apply for that one.Don't go overboard, though.Applying for too many cards will negatively affect your credit rating.And, above all, once you get your new credit card, use it responsibly.