Whether it is a mortgage, a car loan or a credit card you're applying for, the most important factor that determines the sure approval is you credit history. Credit history is a record of all the loans or mortgages you've taken in the past and whether you were able to repay them or not. Needless to say that a good credit history is one which shows a good payment cycle.
The sad fact though is that only a few people nowadays can be proud of their credit history or rating. There sure are some ways to get back to your feet again but it could take time before you are able to fix your credit history. The best thing to do is keep a good reputation and try not to blur your credit reputation. Besides, the very first person who could enjoy the advantage of a good credit history is you.
Here are simple guides you can follow to make sure that your credit history will remain in good standing:
More often than not, one of the most abused cards in the world is the credit card. This same card which gives us the power to purchase without cash could also be the very reason we incur a bad credit history.
Spend only within the range of your paying capacity. Charging only within the amount you can repay is a good way to impress lenders or creditors. This gives your credit card provider that you are a responsible credit cardholder thus giving you their trust in no time. Not only do you get their trust but also it spares you from too high interest charges.
If you can, use only thirty percent of your credit. While using half of it is good but thirty percent is deemed the best. There are some cardholders who tend to max out their credit and are unable to pay. It is not a very good thing to do. Aside from paying charges, you also are hurting your score at the same time for unpaid dues are reported to credit bureaus and would appear on your credit records.
For the first few years, be contented with just one card only. The more cards you have, the greater the chances of using all of them thus leaving you with a lot of payables. It is better to have just one card which is properly managed than owning several cards which becomes your nightmare in the end.
A good credit history could start with a good credit card usage so be the wisest card user as much as you can.