Introduction
A credit history is a document that reveals an person's pattern of applying for loans or credits, mode of payment, the number of late payments if applicable and whether the person defaulted a loan. In America, every person's credit history is linked to an person's social security number. If an person has no credit history or has a bad credit history, he/she may never succeed in getting a loan, job, credit cards and an apartment as well. The bad marks in an person's credit card last for about seven years. Some credit card providers do not issue credit cards to people who have not stayed in America for more than six months.
Step 1
Pay down balances. If an person uses his/her America credit card to make payments like a debit card, then it is important to pay a balance down before making a purchase using the America credit card. The American credit card should be paid down to 30 percent of the total credit card limit 30 days before making the purchase. It is always advisable to keep your credit card charges to a level that is comfortable for you to pay in full at the end of each month.
Step 2
Add positive information. The best and easy way to improve your credit card rating is to add positive information to your cards report. This is possible by simply getting a new credit card account that could secured or unsecured. However, this method does not work if an person has four or credit cards. Applying for another America credit card at such a point could actually lower the America credit score.
Step 3
Monitor your credit reports. Most America credit card reports contain a lot of errors that the owners are not aware of. This could be things like accounts that never belonged to the America credit card holder or false delinquencies. It is therefore important to get your credit card report and go through it carefully. In case you find any unfamiliar figures or details, consult your America credit card provider.
Step 4
Pay bills on time. Missing payment brings down an America credit card score very quickly and it takes time to raise the America credit card back to its previous score. Generally, the American credit card report takes in to consideration the performance in the last 24 months. If you miss a single payment, try your best not to miss another so as to raise your American credit card score this way, nothing might sent to the collections hence no bad reports on your America credit card.
Step 5
It is important to have at least a checking or a savings account. If an person lacks these two accounts and has no credit history, then he/she lack credibility to lenders and other service providers like landlords. After opening an account, make sure that you make regular deposits, never overdraw and never let a check bounce. Though bank accounts do not contribute to the credit history score, in cases where an person has no credit history, lenders and service providers may opt to look at the accounts history to see responsible the person is.
Step 6
Apply for a secure credit card. For beginners, it is advisable to apply for an America credit card that is secured. With a secured American credit card, an person is able to assess the amount of money that is equivalent to the deposits he/she has made to the bank. Therefore, in case you are unable to pay, the bank suffers no loss since it had collected the money in advance. Make sure that your secured American credit card provider reports to the credit bureaus.
Step 7
Avoid applying for many credit cards at the same time. All the American credit cards and history are reflected at the credit bureaus. Hence, if an person has more than 1 credit card, he/she will have a report for each. It may be difficult to maintain multiple credit cards and many credit card applications often ruin an person's credit history.
Step 8
Have a cosigner. If necessary, an person can have a cosigner who should be a person with a good credit score. This is because the person will act like your role model and if he/she has a bad credit history, then it might be interpreted that you will also have a bad credit history. In a case where a cosigner is present, an person should always make timely payments to avoid inconveniencing the cosigner. Your name and that of your cosigner should appear in the American credit card application form.
Conclusion
Managing an American credit card report and attaining good credit scores can be a really demanding task. All that is required is patience, hard work and dedication to overcome the challenges. However, there are options that help people to recover from a damaged American credit history. They include things like. debt consolation plans, credit counseling services and debt management plans. It is therefore an person's responsibility to ensure that his/ her credit card score is at a good level so as to enjoy services like getting good loans and apartments.
