From no credit history to excellent credit history

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 » Research » Guides » Building Credit History » From no credit history to excellent credit history

From no credit history to excellent credit history

Add to Favorites:
They say, Rome wasn't built in a single day. Patience and perseverance are quite important for most of the accomplishments that you crave for. Credit history too is one such case where one can reap rich rewards over a period of time by being disciplined, patient, committed and most importantly sticking to a plan. You can start with no credit history and move towards building a good credit history. Here are a few ways to do so. Start with a prepaid card Get yourself a prepaid card from any of the grocery stores, drug stores, gas stations or super markets. Confirm that these places report to the credit bureaus, which means your credit history, will start rolling as you refill your account every month and use it much the same way as a normal credit card. Be careful to avoid prepaid cards, which levy heavy fees and have high processing fees on multiple transactions. You can go for a secured card too A secured credit card is similar to a credit card in all ways except that you make up for the lack of a credit history by making a security deposit as collateral. This reduces the risk of the lender and hence lowers the interest rate on the card too. As long as you keep making monthly payments on time, your security amount remains safe in the account. In fact, if you can do it consistently for a while, you will develop enough credit history to get yourself an unsecured credit card, which is the next step. Start a checking account and find out if the bank offers a card This too is one of the ways in which you can develop a credit history from scratch. Many banks will offer you, a card if you have some money deposited in the checking account. By maintaining the card and the account long enough, you can develop your credit history to a decent extent to have a credit line available to you. Bad credit credit cards There are a lot of lenders who are willing to provide credit cards to customers who either have no credit history or have a bad credit history. The distinct features of these cards include high processing fees, low credit limit, low rewards and very high interest rates. Therefore, you need to be carefully in order to not run into any outstanding balance because the interests you have to pay will be quite high. It will also undo your effort to build a credit history. By being regular on your payments and keeping the credit card expenditure to a balanced and manageable level, you can develop a very good credit history in a couple of years. Using loans and mortgages There are people who take auto loans and pay them off in good time, with regular bill payments in order to improve their credit history. Your consistency in paying phone and utility bills on time will also reward you with a very good credit history, making you eligible for more attractive deals in the future.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading
How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

Posted: June 20, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading