Your Guide to Building A Good Credit History


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. 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. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Your Guide to Building A Good Credit History

Your Guide to Building A Good Credit History

Updated: December 26, 2012

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

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.

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 Secured Credit Cards: November 2020 – Experts’ Choice

Top 5 Secured Credit Cards: November 2020 – Experts’ Choice

Posted: June 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

Top 5 Soft Pull Credit Cards: November 2020 – Experts’ Choice

Top 5 Soft Pull Credit Cards: November 2020 – Experts’ Choice

Posted: June 3, 2020

When applying for a credit card, you definitely don’t want your credit score to go down. Here, you will find the best credit cards with a soft pull from our partners. An application for such cards won’t make changes to your credit history… Continue reading

Top 5 Store Credit Cards: November 2020 – Experts’ Choice

Top 5 Store Credit Cards: November 2020 – Experts’ Choice

Posted: May 30, 2020

We evaluated store credit cards offered by our partners to find the best store credit cards. They are often loaded with perks that will allow you to save on purchases at your favorite retailer. Plus, many store credit cards are available… 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!