How to Build a Good Credit History

Video Transcript

"How to build a good credit history-- it's again the same question or the same answer, meaning that, pay your bills on time. Once you do then obviously you are going to be able to establish a very good credit history. One of the ones, the type of credits that you want to pay on time are those in particular that are reported on a monthly basis to the credit reporting agencies. Example of those would be your credit cards, mortgage payments, car notes, I'm not sure anything else that may go on there, student loans, and things like that. But you still want to pay your utility bills and all that stuff on time cause obviously without them being paid, at some point they may end up on your credit report, especially when they go to the credit reporting collections agencies. The other part of it and being able to build a very good credit report or a very good credit history is to have a historical low use of your credit cards. Again, we use the example earlier where if you have a $10,000 you don't want to be constantly maxing it out to about eight, nine, $10,000, of what you may have available on the credit card. Try drop $300, $400, pay if off the month so as long as you're able to do that. If you are, so long as you're able to do that, and then the long term you may see the credit card companies coming back and offering you higher credit limits from $10,000 maybe to $12,000 to $15, $20, just depends how you've used your credit card historically and how you've paid them back."