How to Create Credit History

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Establishing a good credit history is important. Without a credit history, it's nearly impossible to finance an auto loan or mortgage. For this reason, it's vital for everyone to open a credit account, and maintain a good history with creditors. Individuals with the highest credit scores usually receive the best interest rates, which equal lower payments.

Open a checking or savings account. When applying for a credit card, credit card companies usually inquire about a bank account. If you don't have a bank account, this can be a sign of instability, and creditors may deny your application. Visit a local bank or credit union and open an account.

Get a secured credit card. Credit cards can help you create a credit history. However, it's difficult to obtain an unsecured credit card with no credit history. Apply for a secured card with your bank. You'll have to pay a security deposit. Once you've established a credit history, the bank refunds the deposit.

Apply for a student credit account if you're attending a college or university. These accounts feature lower limits, and they're easier to obtain with no credit history.

Add your name to someone's credit card. Ask your spouse, sibling or parent to include your name on her credit card account. Her credit account then appears on your credit report, and your score increases each time she makes a payment or pays off the account.


  • To maintain a high credit score, pay your bills on time and keep your debts low.

    When adding your name to someone's credit account, make sure the person has a good credit history.

About the Author

Valencia Higuera is a freelance writer from Chesapeake, Virginia. She has contributed content to print publications and online publications such as, AOL Travel, and ABC Loan Guide. Higuera primarily works as a personal finance, travel and medical writer. She holds a Bachelor of Arts degree in English/journalism from Old Dominion University.

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