How to build a good credit history
Advertising Disclosure is an independent, advertising-supported web site. 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. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » How to build a good credit history

How to build a good credit history

Add to Favorites:
People need to have good records and credit reports in order to be able to get a loan, or mortgage or financing for their business needs. Everyone makes errors of judgment once in a while but financial errors can cost you by making your credit report shabby and lowering your scores for credit. Always keep track of your credit reports and have the bureau list out which accounts are listed in your credit reports. Take care to make timely payments and if you have multiple cards then have an automated system set up where the minimum balance gets paid. You could also opt for a prepaid credit card if you are taking one out for your children. This will ensure that there is no worry about payment and it will not create problems with your credit scores. Make sure that you also do not always reach the maximum credit limit on your cards every time and keep paying regular amounts and work down the balance before making other purchases. No matter how tight your finances are set some money aside to pay for the mortgage and credit card expenses. Avoid having to go over the prescribed credit limit even if that is allowed by the credit card agency. If you do not use a certain card then cancel the card. If you have too many cards and multiple payments to take care of, chances are you will probably miss out on payment date. It is not automatically in your favor if you have not used credit cards before. It still does not inspire confidence from lenders in trusting you. Lenders prefer to see that you have had cards where you have managed to make timely payments and used your credit wisely. Your credit record is going to determine if you can get a mortgage or sanction for a loan. However, if you have bad credit you can still work on it and improve the scores to be eligible. When you are working on resolving a debt, then you need to focus on clearing them as soon as you can. It is also important to work on those amounts which have a higher interest rate on them. You can also opt for debt consolidation to deal with your credit card debts. Going for debt relief counseling can also be a positive step. The debt counselor can help in negotiating your outstanding amounts, your salary and how you can work your way through it. If there are any additional charges on the debt that can be done away with it is possible to reduce the payments that you need to make on a monthly basis. Once you take a positive step and show a willingness to work on your debt your debtors will work with you to make it easier for you. You need to be upfront about how much you can pay and you will have to make amends to your spending style. Once you have consolidated the amount on your credit cards, you can start by cutting up your credit cards, sticking to only basic purchases and doing away with valuables that can get you a good resale value to help pay your debts!

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading