How_To_Build_Your_Credit_Card_Credit_History

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					How To Build Your Credit Card Credit History

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433

Summary:
Throughout your life you’re the history of you credit repayment will
follow you. Ensuring, therefore, that you have a good prior history of
borrowing money is vital.


Keywords:
credit, cards, rating, build, history, help, tips, tricks, spend.
purchase, applications, apply


Article Body:
Throughout your life you’re the history of you credit repayment will
follow you. Ensuring, therefore, that you have a good prior history of
borrowing money is vital. Insofar as credit cards are concerned, the
following is a brief guide to how to build your credit card credit
history.

If you have never financed a purchase on credit previously, applying for
a credit card can be a little tricky, as the issuer will have no record
of yours to judge whether or not you are a credit risk or safe to lend
to. As such, before you apply for any of the major credit card issuers,
you’ll likely need to apply to either a minor credit card issuer, such as
store, or apply for some form of hire purchase, such as a car loan or to
buy a television. Once you have done this, it is then very important that
you make the repayments timely and in full.

Provided that you do pay your statement invoices on time and in full,
you’ll start to create a good credit history. Obviously no lender will
take one payment as evidence of your capabilities to repay your debt on
time and in full. However, so long as you continue to this for a period
of time, even a relatively short period of time, such as three or six
months, you’ll then start to find that other lenders are willing to lend
you money based on your good credit history.

If applying for a store card or hire purchase loan doesn’t seem an
acceptable way for you to create a good history of credit, an alternative
you can consider is a secured credit card. Essentially a secured credit
card requires you to maintain your credit card from a bank account and
the limit of your credit will be a percentage of your account holdings.
While not strictly a credit arrangement, the issuer then gets to see that
you have the capabilities to repay the credit.

Keep in mind that your credit rating will be essential to any credit card
application you make. Consequently, before applying for a card you should
really make an application to a credit rating agency to ensure that you
have managed to build your credit card history up sufficiently not to
have too much difficulty applying. In the event that you think the credit
rating report is wrong, you should immediately set out the reasons why
you think this to the agency so that you can correct any errors in you
history before you apply for the credit card

				
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