Things You Need To Do To Build a Credit History


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Credit Card Applications » Research » Guides » Building Credit History » Things You Need To Do To Build a Credit History

Things You Need To Do To Build a Credit History

The content is accurate at the time of publication and is subject to change.

There are three major credit report bureaus that monitors and provide information regarding one's credit score or history; the Experian, TransUnion and Equifax. All reports coming from them are pretty much credible that's why lenders have those reports as a basis on determining whether a person is credit risk or creditworthy.

What is a credit report? Credit report is where all the loans, mortgages and debts you incurred in the past are collected and recorded. When you apply for a loan or a mortgage maybe, lenders require you to present them a good report. If it is a bad credit history you have, there would be some ways to fix them and may still qualify for a loan. What if you don't have it yet? That's a big issue but then again like having a bad credit reputation, there is a solution to it.

It is true that it could take some time before one is able to build a credit history. You might have heard of some shortcuts but better not listen for it might only make the process longer.

First things first they say and the very first place you should get started is your own personal records. Records residency, employment and utilities can put bear some weight on your desire to build a credit history.

Any lender would be impressed when you present them a long history of employment. This could be a good indication that you can always have a source of income to pay for your debts while a long record of unemployment is a red flag. Without a source of income, how can debts be paid. Remember that lenders are also investors and they invest on you. A person with a lot of unemployment period is not a good candidate.

You may apply for some utilities under your name like telephone, water service, electricity or cable subscription. Again, this would not be an assurance of getting approved but is a part of a process of building our credit history.

Do you move out every now then? If you do while you're considering of building your history then better start staying in one place longer. Frequent moving can give lenders hard times tracking you down and collect payment should you plan to run away from your debts.

You can't just build your history over night or even a month. Just be very patient and you'll reap. What you sow in due time.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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.
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