How to Build a New Credit File

Building a new credit file takes time and effort. Information on your credit report cannot be erased unless the information is inaccurate which means it will take work and effort on your part to ensure every single item that is reported in your credit file from this day forward is positive and will add to building a new credit file that is positive and better than what is showing currently.

Instructions

Remove Inaccurate Entries

1

Review a copy of your credit report. You can obtain a free copy by visiting annualcreditreport.com. Circle every negative item that has incorrect information. The inaccurate information may be a date, amount, status or an account that is not yours.

2

Send the credit bureaus a letter asking that the incorrect information be corrected or removed from your credit file. Each negative item that you can remove will help your score and leave you with a cleaner credit file.

3

Look at the results of the request when you receive the report from the credit bureau. The report will show if the item was deleted, corrected or if it remains the same. File the report with your other financial records.

Pay on Time

4

Review all your outgoing expenses. This includes all bills and day-to-day living expenses. Create a budget that covers every bill that is reported to the credit bureau being paid on time. Review your credit report, if you need to see which accounts report monthly to the credit bureau.

5

List the amount of money you can apply to each credit card bill. Always pay at least the minimum but the lower you can get your credit balance, the higher your credit score will rise.

6

Make each and every payment on time from this point forward. If you can pay extra towards the balance, pay it.

Add Positive Credit

7

Review your credit report and look for the number of positive accounts you have currently reporting. It does not matter if the accounts have a negative history, if you can pay the bill in full and on time from this minute forward, you will consider this a positive account.

8

Create a list on paper and include both your positive revolving accounts and installment accounts. Revolving accounts are credit cards. Car loans and mortgages are installment loans.

9

Open a credit card account if you do not have two to three reporting. Open a secured credit card if your credit score is too low to qualify for an unsecured card.

10

Open an installment line of credit as soon as you are in a position to do so. This can be a personal loan or an automobile loan. The amount does not matter. The goal is to make the payments on time and show you are responsible in paying your debt.

11

Make every single payment you have on time. Having multiple accounts reporting positive information will boost your credit score and begin to establish a new and positive credit file.