In this article, you will learn how to build  good credit. Building good credit is a necessity. It helps you to easily purchase things you do not immediately have finances for.  Such things include buying a home, paying your children’s school fees and many more. When your initial credit is properly built, your credit history becomes appealing to any financial institution that may allow you use their card. That is where a sense of responsibility comes in.

To build credit, you have to get credit, use it wisely and pay when due. To get credit for the first time may be hard. This is because the banks or whatever financial institution responsible will do background check on your previous credits before they approve your request.

Chase Freedom Credit Card

How to Build Good Credit,  do any of the followings to get a card for the first time;

  • Get a Retail Store Credit Card. This kind of card does not have very serious credit requirements. This will give you an opportunity to get approved for a retail credit card than other types of major credit cards. This kind of cards  have low credit limits and high-interest rates and can only be used in a specific retail store. This cards only  helps you build good credit.
  • Apply for a Secured Credit Card. Secured credit cards demand that you to make a security deposit against the credit limit before your approval. The deposit is a collateral for the amount you charge on the credit card and is refunded either when you close the account or it’s upgraded to an unsecured account. The secured credit card is more of a debit card.
  • Become somebody’s Authorized User. It is very ideal to start your credit if the credit card issuer reports the account to one of the major credit bureaus. Ensure the account is in good standing, without any high balance, and without late payments. If the account has problems, it will give you a bad credit history.

How to Build Good Credit, You Can Also Do the Followings;

  • Get a Co applicant for a Credit Card or Loan. A cosigner with a good credit can apply with you to advance your opportunity of getting approved. It is a joint liability account, your cosigner will not want to have bad credit. You can use this to start your first account. Then, after your approval you can start your own.
  • Make Your Payments on Time. Your Payment history is the most important factor when considering an individual’s application. But if you are known for late payment, your chances of approval will be very low. If you always make your payments on time, you will only be building good credit for yourself. When you do not pay (to the point that your account is closed), the account will be sent to a collection agency and it will show on your credit report. At that point, it will affect your credit score negatively.
  • Start With One Credit Card. Do it one thing at a time. Start building your credit with just one credit card. With time you can get more.
  • Do not Borrow too much.
  • Pay More Than the Minimum on Credit Cards. Your credit score considers whether you pay on time and the balances owed on your credit cards and loans. Always pay your balance in full monthly to avoid too much debt.
  • Monitor Your Activity. You can always check your statements.
  • Spend judiciously. Do not buy everything you see. Purchase only the things you need not what you want.

Other things You can do include the followings;

  • Get a job because having a steady source of income is very important in building credit.
  • Make bigger purchases only when you are ready to pay.
  • Borrow only what you can pay. It makes your future lenders and creditors know that you’re a responsible person. An adage says ”hang your bag within your reach”. To avoid unnecessary debt, borrow only what you are sure you can pay back when due. To build your  credit, keep your balance below 30 percent of your credit limit . It is just  best for you. Even if it is loan, borrow only what you are very sure you can pay back when the time comes.
  • Keep Your Accounts Open. Allow your oldest account to be open since it  will help increase your credit history. Closing the account won’t remove it from your credit report immediately. But, after several years, the credit bureaus will eventually drop old, closed accounts from your credit report.

You can build good credit without a credit card by doing the followings;

Borrowing out a loan and paying it back on time. It could be a mortgage, car loan, student loan, or personal loan. Generally, all loans borrowed from a major bank or credit union will help you build your credit score and history. It does not really take time to build a good credit.  Your first account  must be open and active for at least six months before your credit score can be calculated. After that, it’s just a matter of adding months of positive payments to your credit report.

How to assess yourself

To know if you are doing well, check your credit score for free on or You can also purchase your FICO score from Also, the FICO score is the credit score most commonly used by lenders.

Ensure that you do not;

  1. Pay late
  2. Borrow more than you can pay
  3. Make sure you have unused card
  4. Forget to check your credit.