How to Get Better Credit or Gain a Credit History

Money lenders--credit card companies, for example--pay close attention to an individual's credit history before lending. Your credit score, a number between 300 and 850, measures your responsibility in the money borrowing process. A higher credit score gives you a better chance of getting approved for loans and getting the best interest rates available. Your payment history will affect your credit history the most; late or missing payments drastically reduce your creditworthiness. The amount of debt you own also affects your credit. Keep in mind these two biggest factors in order to gain a sound credit history.

Instructions

1

Make at least the minimum payment on all your credit card and/or loan accounts before the due date.

2

Use credit cards responsibly; you should not live beyond your means. Plan your monthly budget with repaying credit card debt in mind.

3

Pay off your credit card debt; ideally you need to bring down the outstanding balance on each of your credit card account below 30 percent of the credit line.

4

Use your credit cards at least twice per month to avoid inactivity on your accounts. Otherwise,

the credit card company may close your account.