Your credit history matters, whether you’re getting a credit card or buying a home. When you understand how to build credit, it can give you the confidence you need to broaden your financial opportunities. But how do you get good credit?
Your credit history is the record of your borrowing and repayment activity over time. It’s reported by your credit card company and other lenders to the credit bureaus and recorded in your credit report. Your credit report is a comprehensive account of your credit history.
Your credit score is a three-digit number (usually between 300 and 850) that quantifies the information in your credit report and indicates to lenders how likely you are to repay what you borrow. A good credit score can help you qualify for higher credit limits and lower interest rates. A low credit score has the opposite effect. So what can you do to ensure your credit health? Here are some tips on how to build good credit.