mmm-santa

Build credit history without any existing Loan account

By: Makemymoney

Importance of credit score can be easily understood by all those who have applied for credit card. Banks started vouching on credit score before issuing a card to an individual. It seems it becoming a vital part of the banking world. Hence there is no doubt how important and significant is to have a good credit score history. And if this is the case then it’s won’t surprise to see individuals with no credit history. They might feel little left out while applying for credit card. As they have no credit history, which means they have no existing score. Let’s find out how to build a credit history without any existing loan account.

Apply for a low limit credit card

In the case when you have no credit history, then you have to play smart. Assuming that you are a salaried employee, you can apply for a low limit credit card. You can apply for it from the same bank that maintains your salary account. As bank will be having the proof of your continuous income. This will also make the documentation process smoother.

Once you get your credit card make sure that you will use it with responsibility. This means to pay your bills on time while staying within 30% credit utilization. If you will successfully meet the following expectations and keep it up for six months, after this you’ll definitely start your credit history. Make sure that you will keep on maintain your payment regularly every month; this will help to not dwindle your score.

Prefer to opt secured credit card

You can also build your score by picking secured credit card. You can deposit the amount that should be one fixed amount with your bank. Then your bank will issue you secured card with that one same limit. This limit will be six for card and account. This is also another best way of starting the race of good credit score.

Buy a product with long-term installment

If you are a gadget freak you can buy a gadget with installment duration of 12 months. Once you start paying your installments on time your credit score will start shaping up after 6 months. Why gadgets..?? Because electronic store gives consumers a consumer durable loan. So this method can also be implemented for scoring credit score.

Once you have decided to get a card you need to maintain your credit score record. Make sure that you will pay your credit card payments on time. Take appropriate action on bills and transaction alerts. Never do the blunder of crossing your credit limit.

This is always suggested to stay within 30% of your allowed card limit. As this will be one of the healthiest moves for the long run with tremendous credit history.

Related post