How to Build a Good Credit History: 5 Things You Need to Know!

Photo by Artem Beliaikin from Pexels

Do you know how many credit cards are used throughout the globe? The answer is 2.7 billion. Approximately 70% of people have at least one.

The most popular ones are master cards. What do these figures indicate? This shows that their popularity is increasing.

If you own one, then maintaining a good borrowing history is really necessary. It increases the chance of the loan approvals and that too at better interest rates.

So how can we maintain a good borrowing history? Let us take a look!


Paying bills on time – This is the foremost step in keeping a good account of your borrowing history. In the current times, people are busy with their hectic schedules. Sometimes they forget to keep the tab on the payment dates. And here you miss a single payment, there your score will decline. Therefore the solution here is – to set up reminders and electronic billing. This will keep you updated on the date of payment.

There is another solution – auto payment plans. You can set up this with your bank. This will ensure that your bills are paid on time.


Do not withdraw cash from a credit card – Most people make this usual mistake. But do you know that it can cost you a lot of money? It can cost you more interest than you will pay for making purchases. And if you are doing it frequently, the lenders will know that you are desperate for money. This will again hamper your financial score.


Check eligibility for every loan that you borrow – As financial institutions are rising in number, people have access to many options. It does not mean that you haphazardly seek a loan. When you properly check your loan eligibility, it ensures that your application will not get rejected. This will lead to high chances of loan approval.

But what if you don’t own a credit card? Can you build a good score? Here’s How To Build Credit Without A Credit Card? Let us take a look!


Get a personal loan – No wonder it is a debt. But you can get a personal loan. And if you use these funds wisely, you will surely be successful in building an excellent score. The personal loan can be utilized for anything – to organize your child’s wedding, buy a home, or treat any disease.

If you are not qualified for an unsecured loan, you can take a secured loan. This means that you will have to provide some collateral against the loan. A piece of advice here – Assess your financial situation so that you can make timely payments. Also, examine the best terms and conditions from different lenders.


The student loan is yet another option – This does not apply to everyone. But students can get the benefit here. Taking a private student loan will boost your history.

If you already have taken this, ensure its timely payments because missing payments can negatively impact your score.



Joel Osteen has rightly said that you have to sow it financially if you want to reap the financial wonders. Maintaining a good borrowing history is not very difficult, provided that you take the needed steps. It will take years of hard work, but after all, it will be worth it!

Similar Posts