Don’t have credit history? Here’s how can you build it (Detailed)

Don’t have credit history? Here’s how can you build it: A good credit history is always a better credential when applied for a loan. A healthy credit score is always a must to have to secure positive results for the loan and credit card applications. If you have never had a formal credit history, it would for sure make a difference when you are out in the market for loans and credit cards. In this post, we discuss the best ways one can use to build a credit history by the best possible practices.

Apply for a secured credit with moderately high amount:

A secured credit card is same as the normal credit card in every respect except the pre-requisite that compels the credit card holders to deposit a certain amount with the card issuer as a security amount that can be used by the issuer in times of any defaults by the credit card user in paying back the amount used through credit cards. This security deposit makes it very easy for anyone to obtain a credit card that can be used to build a healthy credit history.

Avoid applying for multiple loans at a time:

Applying for more than one loan in a short span of time gives an indication to the lenders that you are credit-hungry. So, to have a good credit history, one should avoid applying for more loans all at once. If you have been rejected by a lender then don’t immediately jump to another lender and another again and so on. If you are in need of finance, make a well-thought move before approaching a lender for the same.

Be regular in honoring the credit card dues:

Do not make any default in repaying the amount you used by swiping your credit card. Be regular in paying back the credit card dues. Don’t hesitate to borrow from friends and other informal loans to make good of the overdue credit card liabilities.

Keep using the credit card as often as possible, But with utmost financial discipline:

A regular activity of credit card usage and repayment of the dues within the due dates will tremendously help n improving your credit score. It is a very good indication one gives to the lenders that demonstrate how effectively you are handling your finances. Try to use it at least once a month.

Diversify your lines of credit:

As you progress using the 1st credit card that you have already taken, diversify your line of credit by applying for new credit card and manage it well so that it demonstrates your credit managing disciple at handling multiple obligations simultaneously. This sends a very good signal to the credit rating agency about your ability to manage your debts.


It’s rather easy to ruin your credit score than improving it. However, for the beginners without credit history, it’s a good chance that one can build an impressive credit score by cultivating good credit handling habits. Instead of jumping into the credit cycle all at once, start with small steps and expand as you and when you need.


Join the Discussion