How To

How to Build a Good Credit History

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By eHow Contributing Writer
(85 Ratings)

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.

From Quick Guide: Fix Bad Credit
Difficulty: Easy
Instructions
  1. Step 1

    Know which accounts are shown on your credit report.

  2. Step 2

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

  3. Step 3

    Check that the information shown on your report is accurate.

  4. Step 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. Step 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. Step 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.

Comments  

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on 10/1/2009 http://www.bestcreditcard.googlepages.com

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imme911 said

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on 8/10/2009 gtood simple directions

bsherrod said

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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 said

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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 said

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on 3/18/2009 HI

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