Tips For Building a Good Credit History
Good credit can help you purchase your dream home, buy the car you want, and finance the education you need. It can also help you land a job. A good credit is made up of a positive credit history. Your responsible use of credit will be rewarded with a good credit standing.
What makes up your credit history? Your credit history as reflected on your credit report is an account of your borrowing behavior. It shows credit information such as your outstanding debt, how much you have settled, your late payments, and other credit actions.
To start building a good credit history, apply the following tips:
- As much as possible, be content with one credit card.
Using one credit card helps you control what you spend. It curbs the temptation to spend more that what you can afford, thus preventing you from accumulating debt. Maintain this credit card and always fully pay your balances on time. Older accounts have greater bearing on your credit history and score.
- Promptly pay your bills.
Do not delay in paying your bills. Be responsible enough to settle your bills before the due date as late or delinquent payments leave a bad mark on your credit history.
- Avoid those department store credit cards
The discounts and exclusive offers may tempt you to sign up for several department store credit cards. Don’t give in to this temptation. Opening these accounts all at the same time will appear in your credit history and can be interpreted as bad behavior by lenders and companies.
- Don’t go near or exceed your credit card limit.
A maxed out credit card is bad for your credit. Remember, it’s all about giving others the impression that you can handle your money and debt well. Be a responsible borrower by using your credit card only when you are certain that you can pay in full for your purchases before the due date.
If you know that you have a bad credit history or you would like to regain a good credit standing, seek professional help. Reading credit repair company reviews can help you select the right company that can assist you with rebuilding your credit.