How to build a good credit history
Category General Information
Building and maintaining a good credit history contributes to the probability of obtaining bond approval and being secured as a tenant. Below are guidelines to assist you with establishing a good credit history.
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Using credit responsibly plays a vital role in building and maintaining a good credit history.
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Paying your credit balance in full will show that you are capable of paying bills.
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Ensuring your full balance is paid on time improves your credit history.
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However, carrying a credit balance isn't necessarily a negative thing if you ensure to pay more than the minimum each month as this aids to paying off the balance of your account as quickly as possible.
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According to major credit bureaus, it takes between three to six months of regular credit activity before a credit score can be calculated.
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In addition, the longer you have credit the more beneficial it is for your credit history. This is because a longer history shows lenders that you are experienced with credit and enables them to accurately determine the level of risk they would take when lending you money.
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By continuing to ensure responsible spending and repayment you will build a strong credit history
Author: Seeff Blouberg
