How to build a good credit history

good credit history,creditBuilding a good credit history is effective in avoiding bankruptcy. Filing bankruptcy is the last option one has when it comes to unpaid loans and growing debts. If you can manage a good credit report, you may however be able to stay away from the grip of bankruptcy and bad credit availability.

  • Use that much credit that you can afford to pay. Do not be a spendthrift unnecessarily.
  • Credit card companies provide you credit of 3-4 times that of your income. Be aware to not overuse your credit. Keep the use of credit low.
  • Do not possess too many credit cards. You might end up using all the credit on one card and switch to another but in the end you will be on a sea of debt to pay off.
  • Pay your credit cards and bills on time.
  • Try to save however little you can each month.

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