How to Build Credit Online

When you are ready to buy a car or real estate, you may need to take out a loan to do so. The interest rate that you get when you are approved for that loan is directly related to your credit score. Credit scores are also used for things such as insurance rates and even in hiring decisions. Fortunately, you can work on maintaining a good credit score by building your credit. You can even focus on building your credit online from the comfort of home.

Instructions

1

Apply online for a credit card. Do not apply for multiple credit cards because each application creates an inquiry on your credit report, which lowers your credit rating. Many banks, such as Wells Fargo, have online applications for their bank credit card. You can even get a secured credit card, which is a card where you deposit money to be used as your credit limit.

2

Pay your bills on time each month online. If your bank has free online bill paying, you can sign up and put your bills on auto-pilot, which ensures that they are paid on time each month. My Check Free is an online site that specializes in online bill payment for a variety of companies, such as AT&T and Bloomingdale's. Regular on-time bill payments can build your credit.

3

Check your favorite department store website, such as Gap.com, to see if it offers a store credit card. If so, apply online for a store credit card at one of your favorite stores. Wells Fargo recommends getting one or two department store cards, or gas station cards, to build your credit. Some other stores that offer store card applications on their websites include Target, JCPenney, Home Depot and Sears.

4

Order your credit report from the Annual Credit Report website once a year. Monitoring your credit report online can help you catch inaccuracies, which uncorrected can lower your credit score.