Building Your Credit The Right Way

Building Your 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.Complete Controller. America’s Bookkeeping Experts

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Anyone in your family who has a good credit history can help you start the credit journey imperiously. Opening up a loan account with a cosigner who has a good credit history is a great way to kick-start the process. The cosigner guarantees the payment in case you cannot make it, and should be someone who trusts you. The credit score of a cosigner can suffer if you cannot pay, so all terms must be cleared out to protect both parties before taking this option.

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. People with a bit of credit history can opt for Capital One credit cards, which have a high approval rate among starters. These cards come with no annual fees and offer better rewards if you keep a good history of building credit.CorpNet. Start A New Business Now

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 on the smaller side for a better credit rating, and often, the optimum percentage is 30% or below. 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. Building credit with credit card issuers that accept multiple monthly payments should always be your priority.

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. While it is true that 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 is suitable for building a credit score. Keeping the old accounts that you have a history of paying open is also recommended by credit-building experts. Therefore, never try to get rid of old debts that have been paid off.Download A Free Financial Toolkit

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 credit is a gradual process that demands responsible financial behavior. Students and young individuals embarking on this journey must make wise decisions for a secure future. Seeking help from family members with good credit or starting with a beginner-friendly credit card can kick-start the process. Managing credit card balances, leaving old debts on the report, and paying bills on time are crucial steps. Patience and strategic financial planning are vital to building and maintaining a good credit score.

ADP. Payroll – HR – BenefitsAbout 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.LastPass – Family or Org Password Vault