Ways To Build A Credit History


Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Ways To Build A Credit History

Ways To Build A Credit History

The content is accurate at the time of publication and is subject to change.
A credit history is very important in order to go about your daily routine. Not having a credit history can affect you several ways. It can determine whether or not you get a job, it will decide whether or not you will get a loan for your new house or car and if you do it will decide the interest rate that you will be expected to pay to the bank. A credit history is also necessary in order to get a phone connection without having to shell out a huge initial deposit. Now that we know the importance of having a credit history, we arrive at the question of how to build a credit history. The first step to take is to open bank accounts. This is the best way to start establishing a financial footprint. Every bank will allow you to open accounts without a credit history. And you do not need to be over the age of 18 in order to open a bank account whereas you do need to be an adult in order to own a credit card. The more the number of accounts you have the better it is, but you could have say three different bank accounts for official and personal purposes and then apply for a credit card. Applying for a credit card is the first real step that you will take to build a credit history. When you have been a reliable customer of the bank for a sufficient period of time, say half a year or more you can apply for a credit card and expect to get it without any hindrances. And once you get the card, the next step is to keep using it wherever you can for your daily expenses. This is when you must stop using your debit or ATM card. Just use your credit card for all essential purchases and pay your bills on time. This way you start building on your credit history. The more you buy and pay back on time, the faster your credit history will build up. While using your credit cards, there are a few ground rules that you will need to observe in order to maximize your credit score. But before we go into that, the credit score is a score that is maintained by credit bureaus in order to gauge your financial credibility. These bureaus are independent non governmental organizations that provide your credit information to anyone who seeks it for a fee; however, you would be eligible to get it for free. Make sure that you use just 30% of your credit limit, if you go beyond this you might be mistaken for someone who is a compulsive borrower. This will also ensure that you can keep your debt to a manageable level. Another way to accelerate building your credit history is to piggyback on someone else`s good credit. You can borrow someone`s record by being added to a credit card as a joint account holder or you can also get someone to co-sign a loan that you are taking out. This way, if you pay up your debt you will benefit by having a better credit score owing to the credit that you paid off. But if you default, the co-signer will also be hauled up in order to pay up for the loan. By following these simple tips, you can ensure that you build a good credit history.

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

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!