How to Build a Good Credit Line

Establishing a long, good credit history involves acquiring lines of credit with credit cards and loans, and keeping these accounts in good standing. Poor credit habits can quickly lower your rating. Once you have a bad rating, it takes time to undo or fix the damage. But you don't have to accept a bad rating, you can build better credit and qualify for other types of financing.

Instructions

1

Read your credit report for accuracy. Monitor your personal credit report once a year to check for fraudulent activity and accuracy. Request removal of inaccurate information to help add points to your rating.

2

Make minimum payments promptly . Never pay less than your minimum payment on credit cards, and always pay before or on the due date to help build a good credit rating.

3

Manage debts carefully. Keep debts to a minimum. Pay off new charges on your credit card, and do not go over your credit limit. High credit card balances will reduce your score and hurt your credit history.

4

Keep credit accounts opened. Regardless of whether you use credit cards, do not close older accounts. Closing a line of credit can shorten the length of your credit history, and since a long credit history contributes to a higher rating, closing accounts can reduce your credit score.