Building good credit

Building a good credit score is not easy. If you have already taken some loan or have credit card then your credit history can help you in making so. If it is not then it might be tough.

So how can we build credit?

To build a credit, it is necessary to have an account which is at least six month old. If it is a salaried account, then it is good to establish a good credit. Once you have an active account, then you should apply for credit card so that you can initiate your building of credit.

If you already have credit score then keep checking it time to time. You can take help of website such as

In the following ways you can build your credit:

  • To start with first you have to apply for a secure credit card. In case of secured credit card, your account has money equal to your credit limit. If by chance you fail to pay money then that money can easily deducted from your account.

  • You can also have a credit-builder loan. This type of loan is manly used to create credit only. In this type of loan, money is held in the hand of lenders account only. And money is released only when borrower pay the money back. Whatever payment and transactions are analyzed by credit bureaus.

  • If you are not able to get loan easily then you can use a co-signer which means if you are not able to pay then money can be taken back from you co signer. This is also a secured form. This helps you to build a credit.

  • If you become an authorized user of credit card of someone like your family member, then also you can build your credit.


Once you have built your credit, you have to maintain it. Before maintaining, you need to know which parameters are used. Following parameters are used to evaluate credit score:


  • 35% payment history- this helps to check whether the person is not bankrupt or liar o bankrupt.

  • 30% debt burden- this helps to check whether the person is able to afford new credit returns or not.

  • 15% length of credit history-this helps to know about the usage and timely return of money.

  • 10% on credit searches- this helps to tell what kind of further loans a person is applied for.

These parameters are used by various websites such as to carry out the correct evaluation of credit score.


Building credit score takes at least six months. Following ways can be used to build good score and increase your credit value:


  • Always make payment on time. Never do the late payments.

  • Use the credit amount low. There should be low usage of credit in comparison to the credit limit giving.

  • Close the unused credit card and accounts.

  • Do not open any new account unnecessary.

  • Keep an eye on your credit score. You can take the help of website such as