Many people underestimate the importance of having a solid credit history. Building a solid credit history and keeping your credit score high can help you get the things that you want in life, including a house, a car, a job or a promotion. A solid credit history can also result in you paying less for financial products like loans and insurance policies. There are a number of methods that can be used for building a solid credit history and using as many of them together as you can to ensure the best credit score possible will go a long way towards establishing your financial stability.
Review Your Credit Report Regularly
When attempting to build a solid credit history, it is important for you to check your credit report regularly to remain up to date on your progress. The information in your credit report is used to calculate your credit score and errors on your credit report can result in a lower credit score than you should actually have. Checking your credit report is now easier than ever as each person can obtain a copy of their credit report from each of the three major credit bureaus, Experian, Equifax and TransUnion, for free each year.
Apply For A Credit Card
Applying for a credit card is a good starting point for beginning to build a solid credit history. A credit card allows you to show responsibility by making on time payments and staying within your credit limit. You decide how much to charge on the credit card each month and how to pay back the amount that you charged. Research your options to find the card that has a lending profile that fits you best, as each card issuer has different standards for the issuance of credit cards. If you are unable to obtain an unsecured credit card on your own, consider a secured credit card or having a trusted family member co-sign on a credit card for you.
Do Not Miss Any Payments
The best way to keep your credit profile strong is to make sure that all of the payments that you are required to make are made on time. This not only includes any payments for credit products you may be holding, but also includes payments for utilities, additional household services, medical bills, and rental payment. The companies that take these payments can also report missed payments on your accounts to the credit bureaus. It is important to budget your money wisely and have some money saved in reserve so that you can take care of these obligations as needed.