Informative guide on How to Build Credit History

A good credit history is crucial in building credit, which will allow you to take care of the various financial obligations that you may have from time to time. For example, you may need to get a loan to finance some commitments, be they business-related or personal, to get a credit card, or to acquire a house through a mortgage. All these require a credit history to be extended to the financial credit that you need.

So, how do you build a credit history? Read on for a look at the various strategies you can employ.

Apply for a secured credit card

A secured credit card requires you to make a cash deposit against your credit limit to act as a security before the card is approved. This is a good way to build your credit score from scratch. You are entitled to use the card like any other credit card, for shopping and settling bills, and it will incur interest if you do not pay your outstanding amount before the due date. The cash deposit is the collateral in case you do not pay the amount spent on the card. The amount you deposited will be refunded when you close the account. Secured cards are meant to help you build credit to qualify for unsecured cards, which do not require a deposit and have greater benefits. The best idea is to apply for a secured card that attracts a minimal annual fee and that reports to all the major credit reference bureaus, like Equifax and TransUnion.

Request to be an authorized user on someone’s credit card

You could ask a family member or your significant other to allow you to become an authorized user on their card. The beauty of being an authorized user is that you will have access to the credit card and establish a credit history without the legal obligation to pay for the charges. You can employ this strategy and at the same time engage experts in improving credit scores such as Boostcredit101, who utilize authorized user tradelines (credit cards) to raise your credit score. This way, you will have greater chances to get better loans at competitive terms.
Apply for a credit-builder loan

As the name suggests, this loan is meant to assist you in building credit. This loan is a way of establishing a forced saving plan, since the amount you borrow is held by the lender until you complete the loan repayment. Your payments progress is shared with credit bureaus.

Get a co-signer to obtain a loan or a credit card

You can get a loan or an unsecured card using a co-signer who has a good credit history, hence making it more possible to get the loan or card approved. The co-signer should be aware that he or she is responsible for the total amount if you fail to make your payment. You can utilize co-signer and authorized accounts to get your first account, after which you are free not to use anyone else to help you.


You need to get used to paying all your obligations on time, as the payment history forms the biggest portion of your credit score. Many on-time payments boost your credit score. If you build a credit history with the above strategies and strengthen your credit score by timely payments, then you will stand higher chances to get better loans and other credit facilities.

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