Building Credit the Right Way

Building Credit - Complete Controller

Building credit is not an overnight task; it builds slowly over time. Getting a loan, mortgage, or lease requires a good credit score, highlighting that you have behaved responsibly in the past. Good credit reduces risk because you are more likely to make your payments on time.

Students and young individuals who will start building a credit history must make intelligent decisions to ensure a safe future. Doing things right from the start has advantages; maintaining a good credit score is no exception. Here are five ways to build your credit history the right way.Cubicle to Cloud virtual business

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Anyone in your family who has a good credit history can help you start the credit journey imperiously. Opening a loan account with a cosigner with a good credit history is a great way to kick-start the process.

The cosigner guarantees the payment if you cannot make it and should be someone who trusts you. The cosigner’s credit score can also suffer if you cannot pay, so all terms must be cleared to protect both parties before taking this option.

Getting someone to cosign a loan is not without its risks. If you default on the loan or fail to wipe out the debt, it can ruin the credit of the person who cosigned for you. This person can also be sued or taken to court by the party attempting to recover the debt.

A Starter Credit Card

A starter credit card is built explicitly for people starting their financial journey and usually has lower credit limits of up to $300 – $500. However, interest rates are significantly higher compared to mature credit cards. Student credit cards allow you to gradually build up your credit and upgrade your cards when you build some credit.ADP. Payroll – HR – Benefits

People with a bit of credit history can opt for a Capital One credit card, which has a high approval rate among starters. These cards have no annual fees and offer better rewards if you have a good credit history. Though a starter credit card can be a great option, remember to pay down any balances as soon as possible to avoid high interest costs.

Watch your Credit Card Balances

Another significant factor in measuring your credit score’s worthiness is how much revolving credit you have versus how much you use. The percentage should be smaller and often the optimum 30% or below the rate for a better credit rating. Paying off and keeping your balances low will ensure this percentage stays down.

Consolidating your credit card balances with a loan can also help you score valuable credit points. Your priority should be building credit with credit card issuers accepting multiple monthly payments.

Leave Old Debts on the Credit Report

There is a general perception that debt on your credit report is a bad sign and that you should hurry to remove it as soon as you pay off the loan. At the same time, negative items affect your credit score for worse and generally stay on your report for almost seven years.

Getting them removed might not be such a bright idea. If you have paid off the debt, you have converted it into good debt, which helps build a credit score. Credit building experts also recommend keeping the old accounts you have a history of paying open. Therefore, never try to get rid of old debts that have been paid off.CorpNet. Start A New Business Now

Pay Bills on Time

If you are trying to make a big purchase related to a house or car, plan for it in advance rather than skimping on your regular bill payments and scrambling for money from here and there. A good credit score requires you to invest time by maintaining a steady flow of payments, month after month.

Ruining all the effort and diligence by missing a single payment is never a bright idea because it will take years to build that again. Building credit requires patience and implementing innovative strategies to keep your financial and bookkeeping needs in order.


In conclusion, building a solid credit history is a gradual process that requires strategic decisions and financial responsibility. Whether starting with a cosigner, using a starter credit card, managing credit card balances, preserving old debts, or prioritizing timely bill payments, each step contributes to a positive credit journey. Patience, diligence, and a long-term perspective are essential in establishing a strong credit score that opens doors to future financial opportunities.

LastPass – Family or Org Password VaultAbout Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.Complete Controller. America’s Bookkeeping Experts