Fortunately Credit Score is not fixed even if it is not instantaneous to move from a score of 330 (most often the case with newcomer) to 849. So we built a credit history (credit history or credit report) over several years to get the best score possible.
However, the thing is not necessarily easy because you have to find the delicate balance between open credit lines to show they are obtained, but not too much to show that we don’t need … In short, to obtain credits, but do not live on credit.
Credit history, among ways to build credit
To build your credit history, assumed debts to repay, and their systematic repayment at maturity.
But how to pay its debts if for credit, you must have a Credit Score? … There are few ways to start, from scratch:
The line of credit
The bank allows you to open a line of credit in an amount equal to an amount that you have placed in a savings account which will be used to secure your credit. Of course, this solution costs a bit of money (interest on loans granted are higher than the interest on the account that pays), but it allows to start.
The guaranteed credit card
This is somewhat similar to the previous mechanism used by some banks: a card with a credit line is granted in exchange for the same amount recorded on an account that serves as collateral.
Be co-partner on a credit card
Your credit agency allows you to be co-signer on the credit card of another person (usually your spouse). Please note that the responsibility for repayment is shared between two authorized users.
Canadians are also using this scoring system but in Canada, we are talking about credit rating. Therefore, they do not need to have credit score in the USA. There are there two credit reporting agencies: Equifax Canada and TransUnion Canada; just based on the U.S. to refer to one of these agencies to know the credit rating of their customer banks.
In the USA, your Credit Score is managed by three agencies: Equifax, Transunion and Experian. When you check your credit, you send your social security number to one (or all) of these three agencies that respond with a credit report and Credit Score.
Good to know: You have the right to see your 3 credit report once a year; it’s free and ensures that there are no anomalies (bad information, identity theft …).