3 Tips For Building Your Credit

If you search for the term “credit score” online, there is no shortage of information on how to build credit history, view your credit report or check your credit score. But who has the time, patience and focus to read through more than 38,000,000 search results? Here are some tips to help you build your credit history.

1. Learn About Your Credit Report And Credit Score.

Payment History
Approximately 35 percent
“Maintaining a positive credit history has the biggest single impact on building and maintaining good credit health,” Clifton M. O’Neal, formerly of TransUnion says. “A positive credit history means paying the minimum or more on your credit obligations each and every month.”

Credit Utilization
Approximately 30 percent
Your FICO score does not consider your credit limit by itself. Instead, the FICO score considers your “credit utilization rate,” which is calculated by dividing an account’s outstanding balance by its credit limit.

Length of credit history
Approximately 15 percent
Establish credit early. The longer you have a track record, the better.

Managing new accounts
Approximately 10 percent
Think twice before signing up for a new store credit card. If you apply for new credit frequently, credit companies may view you as a riskier client, especially if you haven’t been handling credit for very long.