Credit History - How to Establish or Re-Establish a Good Credit Score

Establish A Good Credit History

Many people ask how they can establish or re-establish their credit history. This is an important question because credit records are essential to obtain credit. The information on your credit report will be used by potential creditors in determining if you are a good risk. You can help yourself establish a good credit history by doing the following:

Open a checking account and start a savings account. Do not write checks unless the money is in the account to cover them.

Establish a credit record with a department store by opening a charge account.

Take out an installment loan from your local bank and repay it per the contractual agreement.

If you are offered an application for a credit card by a bank or department store, take it. Credit may be more difficult to get if you apply for it yourself.

Get credit from creditors who report to credit bureaus such as banks, savings and loans, and large department stores. Oil companies, utility companies, small department stores, and travel/entertainment card companies do not report to credit bureaus.

Pay your bills by the due dates!

		Establish A Good Credit History Many people ask how they can establish or re-establish their credit history. This is an important question because credit records are essential to obtain credit. The information on your credit report will be used by potential creditors in determining if you are a good risk. You can help yourself establish a good credit history by doing the following: Open a checking account and start a savings account. Do not write checks unless the money is in the account to cover them. Establish a credit record with a department store by opening a charge account. Take out an installment loan from your local bank and repay it per the contractual agreement. If you are offered an application for a credit card by a bank or department store, take it. Credit may be more difficult to get if you apply for it yourself. Get credit from creditors who report to credit bureaus such as banks, savings and loans, and large department stores. Oil companies, utility companies, small department stores, and travel/entertainment card companies do not report to credit bureaus. Pay your bills by the due dates!