How to maintain a good 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 » How to maintain a good credit history

How to maintain a good credit history


Updated: December 26, 2012

By
Add to Favorites:

Maintaining a good credit history is the key to having a stable financial position in today`s world. A credit history is required for pretty much every financial move that you would make in daily life. Right from getting loans to getting approved for a credit card, you must and should have a credit history to your name.

A credit history is basically a record of all your financial transactions which is maintained by the credit bureaus. The record is based on a score that they maintain which directly depends on how well you have managed your finances. All your transactions will be reflected in this record and the credit bureau will provide the same to any institution which requests for it at a cost.

The trick to maintain a good credit history is to keep borrowing. Yes, this is very true although it may seem counterintuitive. You need to borrow in order to start leaving footprints of your financial transactions. But at the same time you will need to ensure that you pay back all that you borrowed in time and on time every time. This is the mantra for maintaining a solid credit history for the rest of your life.

Start by applying and opening several bank accounts. Two to three would be fine for starters. Later, if and when you start a business you can go for more accounts. And after being associated with a bank for a sufficient period of time, you can start applying for credit accounts. They will easily provide you credit cards if you have been depositing amounts at regular intervals in to your account and not going negative on the balance.

After getting a credit account, you must start making purchases on it. Only make necessary purchases like day to day expenditures at the start. Do not use the credit card like a necessity but use it as a convenience. Carrying a credit card around is much easier than going around carrying cash. Always borrow only less than thirty percent of your credit limit. This is important in order to maintain your image as a person who does not borrow compulsively. Also start paying off your debts at the end of the month diligently. Never open more than two or three credit accounts. This will complicate matters as you will not know which account you have spent on.

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

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

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

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