How to establish credit and a credit history

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It sometimes feels that in order to get a credit you need to show a history of credit, so how do you break the cycle and get started in the credit history area. Try these steps below to help you establish credit and a credit history.

Building up your credit score is the first priority.  This Credit score will help banks understand their chance of getting the money back that they lent you. It can take many years to build up a solid credit history.

The first thing you need to do is make sure you have a bank account setup. You need to start a relationship with a bank and show them that you are a responsible customer. Once they start to see you deposit and use your account you have a better chance or getting a credit card or small loan from them. This is when you can start to setup your credit history.

Once you have a credit card or loan, it’s the payment back that is crucial to maintaining a good credit standing and improving your chances or getting offered more products. Remember, the goal is not to get into debt, you are trying to show that over time your credit limits and credit accounts increase but you always pay back on time.

There are many useful consumer sites out on the web for building credit and a good history. Remember the key is to start small and always pay on time. That is the only variable in your credit score that you can actively effect.

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