5 Ways to Build Your Credit History

Women checking credit report on computer

Building or reestablishing your credit can be tricky. Maybe you’re a first-time car buyer with no credit history established, or someone who currently has bad credit and recently filed for bankruptcy. In both situations, it can be challenging to get financing or a loan to purchase a car, a home or make other purchases on credit. As NerdWallet advised in a recent article, there are ways for you to build or reestablish your credit and improve your credit score, such as:


  1. Applying for a secured credit card.
    Secured credit cards — credit cards backed by a cash deposit — aren’t meant to be used forever. The purpose is solely to help you establish enough credit to qualify for an unsecured credit card (one that doesn’t require the borrower to make a deposit) and make other large purchases on credit.

  2. Paying your bills on time, every time.
    Making on-time payments is a surefire way to improve your credit score and build good credit history. A good way to ensure your payments are on time — every time — is to set up automatic payments and/or electronic reminders.

  3. Getting a co-signer.
    A co-signer is someone who is brought on as an additional repayment source for a loan, enabling you to obtain loan terms you may not be approved for. However, before you get a co-signer, you both should have an understanding that the co-signer is responsible for the amount owed if you don’t pay.

  4. Keeping your credit balances low.
    Although having a credit card is good for establishing credit history, experts advise keeping your use of credit at no more than 30 percent of your total credit limit.

  5. Getting approved for subprime financing.
    Subprime financing is available to consumers with bad credit or no credit. For example, if you are looking to purchase a car, dealers on the Credit Acceptance finance program can approve you for financing regardless of your credit history. Credit Acceptance also reports to the three major credit bureaus, so you have an opportunity to improve your credit score by making on-time payments.

If you’re a potential car buyer with bad credit or no credit who is looking to get approved for financing, Credit Acceptance has enrolled dealers across the country who can help you get started on your credit approval. All you have to do is fill out this short form on our website!