How To Build a Good Credit

Road to Good CreditThe credit is the ability to acquire goods and services with an agreement to pay at a later date. Credit can make your life easier by providing immediate benefit of goods and services easy to pay. You can use the loan for the rest of your life; this is why it is a good idea to start building a good credit early.




  • Open a bank account. Bank accounts are generally not part of your credit score, but the history of your account can be essential when lenders consider giving you a credit card or loan for the first time. They may use this information to determine if you are a good credit risk. Active bank accounts in order to prove that you can handle money.


  • Open a store credit card or gas station. For many people, these types of credit cards are easier to open. Sign one can help you start a good credit record. Use your credit card to buy a few items and pay monthly dues religiously. The opening of the account is to establish a credit history and credit score. Call the store and make sure it reports regularly to the credit bureaus so your credit report can be updated to show the credit history.


  • Sign up for utilities under your name. Having an electric or gas bill, telephone, water service, or cable under your name to establish a credit score, but it can help the borrowers first to get approved for credit.


  • Open a secured credit card. This type of credit card requires you to deposit some in the issuing bank. The amount of your deposit serves as collateral for your credit and also serves as your credit limit. This is an excellent solution for establishing good credit especially when other options are not available. Make sure that your bank reports your credit transaction to the credit bureaus to establish your credit history.


  • Get a job. Lenders definitely like to see how you gain income and how long you worked. Your ability to hold a steady job can improve the probability of getting approved for credit.


  • Show a history of stable residence. Lenders also check to see how many times you move and you rent or own. As with employment history, it is better to have a stable residence. Owning a home, even if only jointly, is taken into account as well.


Tips & Warnings


  • Never buy anything you cannot afford.
  • Never miss a payment as will be reflected in your credit history.
  • Avoid adding someone to your individual credit account you will be liable if the person misses a payment.