How to build your personal credit

Building or rebuilding personal credit takes time and consistent effort. It is not an easy or instant fix. Here are five strategies to help you improve your credit score:

1. Check Your Credit Report Regularly:

•   Obtain a copy of your credit report from each of the major credit bureaus (Equifax and TransUnion). You are entitled to one free report from each bureau annually.
• Review the reports for any errors, inaccuracies, or fraudulent activities. Dispute any discrepancies you find.

2. Pay Your Bills on Time:

• Consistently paying your bills on time is one of the most crucial factors in building good credit.
• Set up automatic payments or use reminders to ensure you never miss due dates for credit cards, loans, or other obligations.

3. Reduce Credit Card Balances:

• Aim to keep your credit card balances low relative to your credit limit. A lower credit utilization ratio (the ratio of your credit card balances to your credit limits) can positively impact your credit score.
• Pay off high-interest debts first or consider consolidating debts with a lower-interest option.

4. Diversify Your Credit Mix:

• Having a mix of different types of credit, such as credit cards, installment loans, and retail accounts, can positively impact your credit score.
• However, only open new credit accounts when necessary, and avoid opening multiple accounts within a short period.

5. Establish Positive Credit History:

• If you don't have much credit history, consider opening a secured credit card or becoming an authorized user on someone else's account to build positive credit.
• Use credit responsibly and avoid closing old accounts, as a longer credit history can have a positive impact on your score.

When you are young, getting a student credit card is a great way to start the process. Just use the same principles above and pay off your balance every month.



Remember that improving your credit score is a gradual process, and there are no quick fixes. Be patient, stay disciplined in your financial habits, and monitor your progress regularly. Additionally, seeking guidance from a financial advisor or credit counseling service can provide personalized advice based on your specific situation.