Many people that start out with credit do not have any idea how to establish a reputable credit history. Individuals that are trying to rebuild a poor credit history might be a little better off as they have learned from their mistakes. You can begin with us to begin understanding how to prove your trustworthyness to future lenders.

Acquire some credit

You will not be able to establish a credit history without some sort of credit account to get you going. The system that actually scores your credit worthiness cannot compute unless you have an account that is 6 months or older and used at least one time. Start out by applying for a credit card with your current banking insitution. You can also try getting store credit cards. These tend to have higher rates but they tend to be a little easier to get particularly if you don't have much credit or you are recovering from financial troubles. You might also entertain the idea of a credit card that is secured. You'll have to put money up front for these cards but this will kick start your credit history.

Use your credit!

Now you have your shiney new card, don't let it collect dust. The only way to establish your self as a good risk to lenders is to make some small, manageable charges that you can pay back over time. Just be responsible. Do not max out the account because having credit cards near their limits can hurt your score.

Keep up with your balances

Credit bureaus keep track of everything. They will record in your credit history how many times you were late on your payments. Other lenders can see this activity and might consider you a risk they are not willing to take or raise your rates to make it worth the risk. This will cost you in the long run with credit cards, mortgages and even jobs!

Don't sign up for every store credit card in the mall

Believe it or not just signing up for too many credit accounts can actually hurt you as well. Banks or credit issuers can see this activity as a warning sign that you are in quick need of money or just plain untrustworthy.

Check credit score and go over your credit report often

Identity theft in the age of information just runs rampant. It is not enough any more to just keep up with your bills. You must also protect your self from predators that are looking to steal your name to make a quick score. Check your credit score and credit report often to make sure you are the only one using your good name.