Establishing a Good Credit History

Theresa’s Soap Box | SMP Online


Why is it important to establish a good credit history?

Obvious answer is to get mortgages, car loans, or any types of loans

Some people may not know that if you don’t have good credit, it can deter you from getting things like:

  • Cell phone contracts
  • A lease on an apartment
  • Or even a job

If you don’t have credit history, lenders will not know if you can pay your debt on time.

No credit history does not equal good credit!

Having good credit history can even help you get lower rates on your loans.

So, how do you build a good credit history?

1) First thing to do is to check your credit and find out what your score is

2) Secondly, make sure you have a savings account under your name

3) If you do not have a credit card, apply for one, and if you can’t get one under your name, try to get a supplementary card.

a. If you can’t get a regular bank credit card, try getting store or retailer cards.

i. Some of these stores allow you to buy an item such as a tv and only pay $30/month for 24 months to pay it off with no interest.

4) Pay your bills on time, don’t max out on your credit cards or get close to max.

a. Try to use less than 30% of your credit limit.
b. Try to pay off your balance if possible.

5) To get a good credit score, you need a mix of different credits. In addition to credit cards, you can get installment loans such as small personal loans or car loans.

a. The key is to keep the loan periods short, no more than 1 to 2 years, so you’re not paying too much interest.
b. And also it doesn’t deter you from getting other loans because your debt ratio is too high.

6) Keep in mind not to go too crazy in applying for credit as too many inquiries on your credit can scare off lenders as well.

Last resort: If you cannot get a loan on your own, see if you can get someone like your parent to co-sign for you.

If you have any questions on refinancing, feel free to call us at  1-866-521-9557 or email at

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