More companies are looking at your credit history when considering whether or not to do business with you, so having a good credit history is more important than ever. To get a home loan, rent an apartment, buy a car, get a good insurance rate, and even find a job, you’ll need strong credit.

If you have bad credit or none at all, your goal is to build up a good credit history so that your applications are approved fast. Developing an excellent payment credit history requires time and effort. You can’t simply add your payments to your credit report if you make them every month. Instead, you’ll have to rely on creditors and lenders to provide credit bureau updates based on your payment history.

How To Build A Positive Credit History?

Credit card providers and lenders with whom you have accounts send account updates to credit bureaus every month or so. They report your current balance, payment history, and other account information to the credit bureaus. When you or a business requests your credit score, this information is combined into your credit report and utilised to produce your credit score.

As long as your account details are favourable, meaning you’re making timely payments and keeping healthy credit card balances, the information given by your creditors helps you develop a positive credit history. Expect favourable information to appear on your credit report over time, not overnight or even in a few weeks. Being fiscally prudent and patient can aid the process.

What if You Are Not Having Account?

To have a favourable credit history, you must have open, active, and positive accounts. Start by applying for credit cards or loans for persons with no credit or terrible credit, such as a secured credit card or a retail shop credit card, if you don’t currently have any open accounts. If you can’t get accepted on your own, a relative or friend could be prepared to co-sign for you or add you as an authorised user on one of their credit cards. You may see an increase in your credit score if the primary cardholder has a good payment history.

Best Practices To Maintain Positive Credit History

  • Use Your Cards in the Right Way

Late payments on bills, high credit card balances, and too many credit card applications should all be avoided while trying to maintain a solid credit history.

Don’t be hesitant to begin small. To begin, expect limited credit limits and loan amounts, such as less than Rs.100,000. Creditors and lenders will extend you more credit once you’ve demonstrated your ability to manage a small amount of debt. Once you’ve gotten a credit card or a loan, don’t use up all of your available credit and make sure you pay off what you owe each month.

  • Correct The Credit Report Errors

You can use the credit report dispute process to get inaccurate information removed from your credit report. Your credit report, for example, may show that you were late on a payment that you are confident you made on time. To fix credit report mistakes, write a dispute letter to the credit bureaus detailing the problem and a copy of any proof showing the information is inaccurate. If the investigation backs up your claim, the bureau will look into it and amend your credit record. If not, you can file a complaint with the company that made the mistake.

  • Pay All Your Bills On Time

Not all of your monthly bills are reported to credit bureaus on a regular basis. Even if you pay on time, your cell phone, cable, and auto insurance payments, for example, do not help you develop a great credit history. If you fall behind on these payments for several months and your account is transferred to a collection agency, the debt will be posted to your credit report, which can damage your efforts to maintain a decent credit score.


It’s important to have a favourable credit history, particularly if you’re seeking to repair your credit after a setback. However, don’t expect new accounts to erase or compensate for existing credit issues. Building a good credit history isn’t as difficult as it may appear. You’ll be developing a positive credit history if you open an account and pay your bills on time every month. Your credit score will rise with time, allowing you to secure higher credit card limits and larger loans.

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