Building a Good Credit History

It can take years to build a good credit history, but it can be destroyed in a very short period of time. Think of your credit history as a record, a record of your financial behavior over time. All of the good things you do with your credit just get better for your score the longer you do good credit things. Pay your bills on time, keep your balances low, building a good record of your financial stability. Your credit report is a record of all your financial activity of the last 7 to 10 years. 

There are really no short cuts to building good credit. First start by establishing credit that reports on your credit report. Open up your own credit card, ask your banking institution to see if they will offer you a credit card based on your banking history with them. 

Once you have a credit card use it responsibly. Use it for small purchases and pay them off each month. Consider putting a small recurring charge on it that you pay off each month. A credit card is a valuable tool to build and maintain your credit, keep your balance low and manageable each month. 

Credit cards are not the only things that affect your credit. Make sure to pay all your bills on time each month.Things like utility bills don’t normally appear on your credit when you pay on time, but if you don’t pay, it will report on your credit as a negative account. 

Do not apply for too many cards at a time. You need to build your credit up over the years and trying to secure a lot of credit in a short amount of time can lower your score. Each time you apply for credit your credit report is pulled and it is an inquiry. Too many inquiries will lower your score and may make credit issuers think you are trying to secure too much credit at once and you may be a financial liability. 

To maintain your good credit always pay your bills on time, don’t miss any payments so you can build an excellent credit history. 

Increasing your credit score from good to great doesn’t take a lot of work. A score of 680 is good but a score of 720 is much better. If your credit needs a little help to make it great, it may be as simple as paying down your balances or removing the inaccurate negative items from your credit reports. Step 1 Credit helps clients improve their credit from good to great credit everyday.