- 1). Pay your telephone, electricity, water, and gas bills on time. Utility companies report late or missed payments to credit reporting bureaus. You can’t establish a new credit file by paying your bills on time, as these are not reported, but late or missed payments can establish a poor credit file.
- 2). Get a checking account. Keep it in good credit. Very occasionally request a small overdraft for a short duration. Ensure you repay the overdraft on time. Banks do not check your credit file before authorizing an overdraft but it is recorded with a credit reporting bureau and establishes a new credit file.
- 3). Check out prepaid credit cards. Many are available. You do not need a credit file to obtain a prepaid card, but some card issuers offer a credit building facility.
MasterCard and Visa websites have links to several card issuers that offer prepaid credit cards. If your card has credit building then topping up (charging near the credit limit) and certain purchases get recorded to credit reporting bureaus, establishing a new credit file. - 4). Get a secured credit card. It’s a great way of establishing a new credit file quickly.
Deposit an amount you can afford with the card issuer. It is held as a guarantee and refunded when you have built up a good credit record. You will be given a credit limit of up to 100 percent of your deposit. The card, credit limit, and payments are recorded with the credit reporting bureaus. - 5). Apply online for a retail store card. It’s best to do this when you’ve had a secured card for a few months. Store cards are easier to obtain than regular credit cards. Used wisely, they build your newly established credit file.
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