How to Build a Good Credit History

Building a good credit history is essential to anyone who expects to make major purchases, rent an apartment or start a business. Building good credit is actually easy to do - if you pay attention to your expenses. Follow these steps to help build your credit history.

Difficulty: Easy

Instructions

1. Know which accounts are shown on your credit report.

2. Request a copy of your credit report at least once a year.

3. Check that the information shown on your report is accurate.

4. Pay all of your bills on time. You don't need to pay the entire balance each month, but make at least the minimum payment promptly.

5. Avoid going over the credit limit on your credit card account. Some credit card companies allow you to do this as a courtesy, but it can reflect poorly on your ability to handle your account.

6. Cancel credit cards you aren't using or don't anticipate using.

Tips & Warnings

• If your application for credit is denied, you're entitled to a free credit report. The denial letter you receive should list the credit bureau used. Contact that company for the copy of your credit report.
• If you don't understand the report, contact the credit bureau or your local consumer credit counselor.
• Setting up an automatic payment plan with your credit card company can help ensure that you never miss your minimum credit card payment.
• If you never use credit of any kind, it doesn't mean that you'll have a great credit history. Most lenders prefer to see a history of credit and debt payment.
• Avoid "shopping for credit." Each time you apply for a loan or credit card, an inquiry from that lender will be reflected on your credit report. Too many inquiries can signal to a potential lender that you're a risky customer.

Who Can Help Sponsored

• How strong is your score?  Did you know checking your own credit won’t affect your score? Click here to see yours in two easy steps from Experian.

[creditmaster]

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[imme911]

on 8/10/2009 gtood simple directions

[bsherrod]

on 8/2/2009 Great Article, I think that in todays economic environment people need more aggressive opportunities to become homeowners. I was able to get a loan through a private source that few people are aware of. I had some serious credit problems at the time, but was still able to borrow the money that I needed to buy a home. I went to http://budurl.com/notapaydayloan and I got the information that I needed to borrow the money.
As far as building good credit history there are some very good forums that can be of very good help to you. Do a search on google for credit forums. These are research groups that share info on credit. You will find a wealth of knowledge and detailed guidance.

[bibob0007]

on 3/18/2009 i had a bank account before i got my social security and when i moved from tennesseee i left that account without closing it now after i got my social security i was checkeng my credit report so i found out that my score on experian and transunion 731 but equifax 554 and its too low because that bank reported the balance to equifax ,so i called equifax to see what i can do and i explained that i dont have any balance for that bank so they told me u have to call the bank so they can report equifax that there r no balace, so i called the bank and i gave them my name and account number, but in the bank they didnt find any record for my name so i dont know what i have to do??

[bibob0007]

on 3/18/2009 HI