Building Credit History

A good credit history is getting more and more important to have everyday. Laws are always changing making it harder to get ahead unless you have good or excellent credit. Good credit is imperative when it comes to getting a home, a car, student loans, or even applying for credit cards. A bad credit history may even affect your employment. It is becoming more and more common for stores or businesses to only accept major credit cards in order to make purchases. Bad credit will only lead to more frustration and headaches then necessary.

It takes seven years in order for your credit history to be wiped clean, and ten or more years to clear a bankruptcy. The best way to keep your credit history good is to keep it that way from the beginning. Keeping track of your credit can help you to avoid charges that you may not have approved, or help you keep your goals in mind. If you notice any false claims on your credit history, make sure to file a dispute immediately with each credit bureau. You are protected under law and it is the credit bureaus’ obligations to investigate the claims and clear up any mishaps. Your credit report can be obtained from what are called the three B’s: TransUnion, Equifax and Experian. Your credit report can now be checked online as well.

Once your credit history has delinquencies on it, you need to start repairing it immediately. If you do not have any credit yet, one of the best ways to start building credit is to get a credit card. If you cannot get one on your own, try to find someone with a good credit history who will co-sign for you. It is important that once you are approved for a credit card it is imperative to make your monthly payments on time. Your credit score can be affected the moment you miss your first payment. If you have a co-signer remember that anytime you miss a payment, it falls back on them. If you go six months faithfully paying your credit card on time, you will get notoriety and will be able to apply for a credit card or loan without a co-signer.

When you apply for a loan, creditors will check your stability. If you move around a lot, or have gone through several jobs in a short amount of time, they may not approve you for a loan. If you are applying for a big loan, you will want to be able to prove stability for at least one year. Also remember that being approved for a loan depends on your income and age. The earlier you start building credit, the faster you will be approved for loans.

Once you have a credit history, the best advice is to keep it excellence because as soon as your credit gets a delinquency on it, it can be a long road back to financial stability. If you keep a close watch on your credit history, and live within your means you will probably be able to keep your credit history untainted. Unfortunately, your credit score, whether it is bad or good, affects your financial freedom and ability to move up in life.

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