Creating a Solid Credit History

Having a solid credit history is important if you want to apply for loans in the future. So, here are a few simple things you can do to build that credit history:

• Use your credit card – Whenever possible, use your credit card instead of cash. If you can’t get a major credit card, get one from a department store or a secured card that reports to the credit bureaus. Every time you spend with that card and pay it back on time, you are proving that you are responsible with your cash and building up that important credit history. Lenders prefer lending to people that have borrowed money and paid it back.
• Pay your routine bills on time – Make sure all of your household bills are in your name, such as the telephone, electricity, and cable or satellite. Then, pay these bills on time each month.
• Open a bank account – Keep your bank account in good standing and your bank will vouch for your ability to be responsible with cash.
• Pay everything on time – No matter what you are paying on, always pay it on time. Just one late payment can cause interest rates on your credit card to go up and can cause you to be denied for a loan.