Steps to Building Your Credit History
According to one study, nearly one in five people have no credit score or history.
If you’re one of those people, you might be wondering what you can do to boost your credit history.
Thankfully, we have a few tips to help you build your credit card history, so make sure you keep reading!
Pay on Time
Your payment history is one of the most important things that go into your credit history. Even if your accounts aren’t that old right now, you can start building your credit by making sure you pay off all your payments on time.
When you have a credit card or a loan payment, make sure that you pay it within 29 days of when it’s due. If it’s 30 days late, that missed payment gets sent to the credit bureau, and it can hurt your score.
To make sure you pay everything on time, you can always set up automatic payments if you’re likely to forget. But if you just don’t have the funds to pay your bill, reach out to the issuer of your credit card as soon s possible so that you can start discussing some of your other options.
If you want to learn more about the basics like on-time payments, keep reading here.
Get a Credit Card
If you’re starting from scratch, open a credit card account. There are plenty of first-time credit cards that you can get with no history.
You may want to start with a secured credit card, although these aren’t meant to last forever. They’re great for people who don’t have enough credit to qualify for an unsecured card.
A secured card is when you put down a cash deposit up front to help pay for that amount. Whatever limit you put down is your credit limit on that card. After you’ve done that, you can use it just like a regular credit card.
Only Take Out What You Need
You should then only take out whatever you actually need. Many people are irresponsible with the card and use it to buy all kinds of things they can’t afford.
However, you should treat it like you would with a debit card. You should do the same thing if you’re taking out a loan. Even if the lender says you qualify for more money to borrow, only take out what you need so you don’t have to pay a lot back in the future.
Learn More About How to Build Your Credit History
These are only a few things you need to know to build your credit history, but there are many more things we can try.
We know that dealing with credit score history can be stressful, but we’re here to help you out.
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