Easy Ways to Establish Your Credit History

By Leni Parrish on August 5, 2010

It is surely is a frustrating thing when you get denied of a loan or a credit card especially when you so needed it. It could be a little hard establishing your credit but you too should remember that it is a more difficult feeling knowing that no financial institution can trust you just because you don’t even own a credit card. The worse thing is you can’t have the chance to establish your credit since no one gives you a chance to do it.

For you to know where you should start working here are the things that you need to check on for these are the aspects that a lender uses as a deciding factor whether or not you are credit worthy. Lenders look on the employment history of a person. If you can stay longer in one company for a long period of time then you may likely to have the approval of your application. When an employee can’t hold a steady job then this is an indication that he might not be able to pay off his dues since there would be a period of unemployment. As an advice, stay with the job as long as you can if you really are serious establishing your credit.

A good credit score is not actually needed when one intends to open a bank account. However, this could be very important and helpful when establishing your credit since lenders usually look onto this. When they see that you have established and managed your bank account well then you have bigger chances of getting approved of a loan or a credit card.

Bills enlisted under your name like phone, cable or internet subscription can be possible even without you having a credit history. It won’t even be helpful in establishing your credit score but could weigh a lot especially when it is your first time as a borrower.

The frequency of your moving is also checked by lenders. Like your job or employment, it is as important that you establish you residency. it also is a positive thing that you own a house even if it is a joint property.

Here are several ways on how you could start establishing a better credit:

As much as possible, try your best to open and be able to maintain a checking and a Savings account at your local bank.  How could this be helpful with your score?  An active bank account with a good standing is a good indication that you are able to handle your finances well. Bank account is not a usual part of determining the credit score, it can help the lender decide whether or not they are risking on you. A good relationship with the bank can help you have the possibility of acquiring a loan or a credit card through them especially when you already had some business with them.

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