Robert Palumbo • Nov 16, 2016
Credit history makes up a solid 15% of your credit score. The 15% is weighed on how long your accounts have been open, and how long it has been since you have been using those accounts (AKA, are they active?). To create a solid history, credit bureaus would prefer a minimum of six months under your belt.
Therefore, before you close a credit card account, research whether or not this will affect your credit history. If you’ve had one card for 10 years, and another for 5, your best option would be to close the 5 year account as it holds less credit history.
Did you know that as of just last year, 56% of us hockey lovers had never even checked our credit score! And only 14% of us check it regularly. So high five for being financially savvy (and wanting to improve your credit score).
Anyways, back to business.
Let’s tune in on how to build your credit history. For those of you who are in need of a further history, there are two easy ways to establish credit:
By making small purchases and keeping consistent payments, you can effortlessly build a strong credit score. As the saying goes “The best credit, is old credit”.
But what about rebuilding?
Maintaining an active but responsibly managed account, line of credit, or loan (from a cool company like Borrowell) is a great way to continue rebuilding.
Keep up the seriously amazing work by following these couple of steps, and before you know it, you’ll be ready to take on your next financial goal.
As you know, your credit score depends heavily on payments made on time, which is why we keep telling you to pay off current debts, and encourage you to set up automatic payments to avoid future delinquencies.
Although – you’ve already started doing those things, right? We thought so.
Creating a credit history takes time. By maintaining regular payments, following our weekly steps, and being aware of your score, you are now on your way to building a great one.
In this Borrowing 101, we’ll give you an overview of credit cards. You can also see other introductions to personal loans, lines of credit, and mortgages to help you understand how they work, when to use them, and what to be careful of.
The Borrowell Team
Apr 27, 2020
It's always good to know what you can do to improve your credit score, no matter where you are on your financial journey. Whether you’re looking to rebuild your profile or planning a big purchase in the future, increasing your score can mean more attractive interest rates and offers on things like credit cards, loans, mortgages and lines of credit.
The Borrowell Team
Mar 01, 2020
Borrowell® is a registered trademark of Borrowell Inc. All Rights Reserved. The Equifax credit score is based on Equifax’s proprietary model and may not be the same score used by third parties to determine your credit profile. The score provided to you for educational use is the Equifax Risk Score.
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