How to build credit history
Building credit history can be done very simply.
1. Apply for a credit card from a store such as Macy's, Target, Wal-mart,
Home Depot or any other chained merchant. These businesses
almost always approve credit applications to individuals with zero
credit history. Make a purchase or two once a month for 6 months
be sure to pay off the full balance before the due date. This practice
will establish credit history and will enable you to become eligible for
credit cards with major companies such as Visa, Master Card,
American Express, Discover and others. Again, the key is to pay off
any credit card balance before the minimum payment date is due.
2. Obtain a secured credit card. These types of credit cards require that
you provide a security deposit of a specific amount of money which
is what your line of credit is based on. Any purchases on your card
should be paid back in full prior to the minimum balance due date.
Practice this technique for at least 6 months and your credit score
and history will increase quite fast. This is a great way to establish
a high credit score.
3. Try to not to open to many credit card accounts. Two or three credit
lines of credit is reasonable. The longer you keep your accounts open
and in good standing, the better your fica score will be. Again, pay the
full balance of your cards if possible every month. These three techniques
have been proven to establish and achieve an excellent credit score.
Written by Free Credit Score
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