Building a Favorable Credit History

Establishing a favorable credit card history is important if you hope to be able to get a loan for a car or house in the future. A favorable credit history also helps you receive loans and credit cards at a lower interest rate. So, what can you do to build that credit history? Here are a few tips:

• Use your credit card whenever possible instead of using cash – just be sure to pay off the balance at the end of each month and to do it on time.
• Set aside your checkbook and pay your monthly bills with your credit card. Then, pay all of your bills at once at the end of the billing cycle when you pay off your credit card. It’s more convenient and it will help you build a credit history.
• If your credit history won’t allow you to get a major credit card, start off smaller by obtaining a department store credit card. They are usually easier to get and, after several months of use, you will find that it is easier to get a major card in its place.
• Opening a bank account is also beneficial. By managing it well, you can use that bank as a reference when it comes time to apply for a credit card or loan.