Responsible Payment of Accounts Today Means Creating Impressive 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 » Responsible Payment of Accounts Today Means Creating Impressive Credit History

Responsible Payment of Accounts Today Means Creating Impressive Credit History


Updated: December 26, 2012

Add to Favorites:

Borrowing money is a trend that could enhance the lives of individuals financially. Being approved of a loan, a mortgage or a credit card application is already a privilege in this world and times of economic catastrophe. The best option for a consumer to grab this chance is to bring out his credit worthiness. The capacity to pay for a loan is measured by lending companies including banks and other retails stores through credit history. It is a fact that all financial transactions done by you that are reflected in the records of financial companies will dictate how your condition will be in the future.

Upon your application for credit, the company will secure a copy of your credit report which was prepared by the three reporting agencies. The content of the credit report is based on the information gathered by the bureaus from merchants, landlords and other creditors whom you have made transactions with in the past. Whatever purchases or acts of borrowing you have done and have not settled will be posted until the time you pay for them or you negotiate with your merchant to delete them.

Credit history is the sole basis of your credit scores. The delinquency or promptness in your payment a few years back will be known to your prospective lender. Your scores are made up of several components which the credit reporting agencies use to compute. If your reports don¡¯t show any signs of your willingness to pay your debts regularly and promptly, then the lenders will have an impression that you are not in any way worthy for another big opportunity. Credit scores are divided into three main categories which are payment history, debt to credit limit ratio, length of credit history, types of accounts which are opened under your name and the inquiries you made for new accounts. All these five categories are essential in achieving a score worthy of another credit chance.

You are the maker of your own financial destiny. If you buy something today which you don¡¯t need and which exceeds your credit limit, you break your credit history. If that something you buy cannot be afforded by what you actually earn, then again you create a bad history. Everything now lies in your hand. Financial management is your way out of misery. Use your credit opportunities wisely, be responsible for what you borrowed and open the doors to great financial chances tomorrow.

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:

Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 20, 2017

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
Top 5 Cards for Travel from Our Partners Autumn 2017 – Expert Choice

Top 5 Cards for Travel from Our Partners Autumn 2017 – Expert Choice

Posted: November 8, 2017

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
Balance Transfers Within The Same Bank: What You Need To Know

Balance Transfers Within The Same Bank: What You Need To Know

Posted: November 2, 2017

Transferring a credit card balance from a high-APR card to a card with a zero-interest promotional rate is one of the best ways to pay down debt. But many people have questions about how to do it. Specifically, some folks wonder whether ... Continue reading