How to Get a New Credit History

Lenders use a system of credit scoring to evaluate your suitability for lines of credit. The better your credit history the higher your credit score. A good credit score gives confidence when applying for credit. Credit used wisely helps with financial freedom. It lets you purchase larger items and repay over a period of time.
Without a credit history it can be difficult to obtain credit. Getting a new credit history takes a little time, but with patience is not difficult to achieve.

Instructions

1

Pay your bills for electricity, water and telephone on time. Always pay your monthly cell phone bill on time. Utliity and cell phone companies report to credit reference agencies. Promptly paying your bills helps build a new credit history.

2

Get a pre-paid credit card if you have no credit history. Many cards are available. Check online to compare as charges can apply. Check out cards that will help build a new credit history. Use the card regularly and keep it topped up.

Arrange to have a co-signature on a credit card with someone who has a good credit history. These are available to help build a new credit history. It gives confidence to a lender. Should you fail to repay the money the co-signatory must pay.

3

Obtain a secured credit card. These are widely available. Check online for the best offers. You need to deposit money to the card. Then you can borrow between 50% and 100% of the amount deposited.

Store cards can be obtained easier than major credit cards. Interest rates are higher, but if you pay off the balance every month no interest is payable and your credit history will improve.

4

Get a checking or debit card account. Ensure that you do not overdraw without prior arrangement. Regularly using your debit card or checks will build your credit history.

Occasionally request a small overdraft from your bank. Overdrafts are usually short term loans. Paying back the overdraft on or before the date due will assist in raising your credit history.