Credit History

Building Your Own Credit History

by: Fruzsina Csery

Modern times require modern actions and credit cards are the modern tools that anyone may need but not everyone may have. Establish a good credit history seems to be harder for those individuals who do not have a credit past, however it can be build up individually for the first time starting small.

Your Credit History

Your credit history determines many economy-related activities in your life including getting a job, obtaining reasonable rates on insurance, purchasing an automobile or renting an apartment. So starting small building your credit history means that you can do some research for department stores and financial institutions where you can apply for small amounts of credit.

Do not forget to get a written copy of the conditions, terms and fees applying to the type of credit chosen. Penalties for late payments and interest rates may be slightly higher that other regular credits if the applicant does not have established credit.

Credit History Report

Most experts recommend you to request a copy of your credit report from the three national credit bureaus. Yes, you may not have a credit history yet but the request will make the bureaus create the reports making it easier they put files on your credit report as soon as you start getting small credits.

Although there is, a possibility of getting those reports with information already included because any credit purchases made in your past is reflected on your credit history. If the file exists, make sure the information is accurate or immediately report any incorrect information so that they can take action to correct your file. 

Bank Accounts for Credit History

Another good option in building your credit history is to open a bank account, either a savings or checking account. Analyze the bank's financial products because there is no need to be a big investor to find some type of products offering savings accounts, checking accounts and debit card as a whole.

Always keep in mind that your bank accounts are to build a good credit history so do not miss your goal using them to purchase until you are in debt or you bounce checks. Getting a loan may round your credit plan if you pay consistently and pay all bills in a timely manner, so the granter may report this positive information to the credit bureau.

There are other useful strategies to build a credit history or improve your credit score if the history already exists. Apply for a secured credit car or prepaid card, open utility accounts such as gas, electric and phone service are just a few of them.

Pay your Credit Cards to Build your Credit History

The most important thing to remember, use your cards or credits regularly to ensure that your report is updated regularly and pay your bills on time, because lenders look at the most recent information on your credit history report.

Check out the table below for the current Best Buy Credit Cards, as researched by MoneyExtra

About The Author

Fruzsina Csery is a freelence copy writer. She occasionally writes for Student Credit Cards.

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