How to start building your credit history

Credit card providers always prefer people who have a good credit history to speak for themselves.

14:10 15 November 2013

Credit card companies are usually hesitant to hand first timers their requested loans. This is because these people do not have a credit history and so, the card companies don’t know if they’ll be able to handle their credit wisely and pay back on time or not. This should not discourage any new consumer. Rather, you should be working on a way to impress these companies and prove that you are worthy to be trusted with credit. 

 

Acquiring your first credit card

 

Although you do not have any credit history, credit reports can hint you on how likely it is for you to be accepted by the credit card providers. The sooner you start using credit cards, the sooner you can build a good credit history- the key to securing an attractive credit score. 

 

That said, in order for you to have a good credit report, some of the following should be considered:

 

• You can have good credit report if your name is written on utility bills such as electricity, gas, mobile phones and others. The utility bills should be able to prove that you do not default or delay payments. 

 

• Credit card companies are always careful of fraud so they will do everything they can to ensure that there’ll be no risk involved in dealing with you.

 

• Credit card providers may find it difficult to confirm your address if you are not registered on the electoral roll.

 

Blank credit history

 

Those with no credit history may not know the facts about building one and lenders want to be sure that you can handle their money professionally. You stand a better chance of being accepted by these providers if you take time to do more research on your credit ratings. Even if you were formerly using your partner’s credit card, you may still not be eligible to be accepted by the providers.