How to Build a Good Credit History

Building a good credit history is essential to anyone who expects to make major purchases, rent an apartment or start a business. Building good credit is actually easy to do - if you pay attention to your expenses. Follow these steps to help build your credit history.

Step One

Know which accounts are shown on your credit report.

Step Two

Request a copy of your credit report at least once a year.

Step Three

Check that the information shown on your report is accurate.

Step Four

Pay all of your bills on time. You don't need to pay the entire balance each month, but make at least the minimum payment promptly.

Step Five

Avoid going over the credit limit on your credit card account. Some credit card companies allow you to do this as a courtesy, but it can reflect poorly on your ability to handle your account.

Step Six

Cancel credit cards you aren't using or don't anticipate using.

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