Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Products » The habits that help to build a good credit history

The habits that help to build a good credit history

By
Add to Favorites:
The habits that help to build a good credit history

A good credit history suggests that an individual is creditworthy and more or less consistent as far as expenses and income are concerned. Banks which give out loans, credit card companies and even employers are looking at the credit history of the individual to ensure that they are indeed dealing with the right person. A bad credit history is seen as an indicator of risk, which is why card holders have to try as hard as possible to maintain a good credit history. Here are some simple habits, which one should follow religiously to build a good credit history over a period of time.

Pay bills before the due date

A credit history, which shows all bills paid before the due date for over a year or two, indicates that the individual has control over his/her expenses and doesn’t go overboard. It also indicates that the individual is a responsible citizen, who pays all debts on time and doesn’t live beyond his or her means. Basically, a card holder or customer who pays bills on time on a consistent basis is what the creditors desperately seek. Hence, credit card customers shouldn’t be laid-back, when it comes to paying the bills. Waiting for the last day to pay your bills, could result in the risk of missing the due date, because of unforeseen situations thus tarnishing months and sometimes years of hard work. You would also avoid the late fees of up to 25 dollars if you don’t miss the deadline.

Try as much as possible to avoid outstanding balance

Some credit card customers have a revolving debt in excess of 2000 dollars. Usually such customers make minimum payments that are required, but incur a lot of interest and various other types of charges. Moreover, credit score goes down if the individual’s credit utilization ratio is high. It is the ratio of outstanding balance to available credit limit. Therefore, it is a good habit to pay off the outstanding balance in full at all times. An outstanding balance after the due date is only an indicator that the individual is living beyond his or her means.

Avoid going over the credit limit

This will incur overdraft fees on top of the outstanding balance. Using the entire credit limit available will also have an adverse effect on the credit history.

Don’t close credit card accounts frequently

Every time you close an account you are losing the history. So use as few credit cards as possible, but don’t close them once you start using them.

Add to Favorites:

Related News:

Frugal Fashionistas Rejoice: Century 21 and Alliance Data Launch New Credit Card

By Elizabeth Nelson, Posted: September 26, 2016

New York City-based bargain department store Century 21 is partnering with Alliance Data to launch a new credit card program. A favorite of fashionable bargain-hunters, Century 21 operates 10 stores across the greater New York City area ... Continue reading
Talking About Money Equals Happiness

By Dar Dowling, Posted: September 23, 2016

Love and money are the two biggies in life and relationships, and now, according to a new study by TD Bank, couples who talk about money have a higher happiness factor than those that don't. Continue reading
Credit Card Limits Up, Up and Away

By Dar Dowling, Posted: September 22, 2016

Credit card limits had an upswing during the first six months of this year, according to a new study by Experian, with credit card limits in both the subprime and deep subprime credit range equaling $6.4 billion – the largest amount in the ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit