Credit scores are indicators of the kind of borrowers we are. It does play a significant role in determining the acceptance of the application for getting loans, mortgages, and cars. It is also a crucial factor in determining one’s interest rate. They are calculated using credit history. The higher the scores, the better is it for the holder as they are seen as lower risk. It is merely a three (3) digit number that relates to how likely you are to repay debt.

For you to have a credit score, you will need an account that’s been open for about least six (6) months if you are using FICO or one or two months if you are using a reputable website. An easy way to build or rebuild your credit score is through secured credit cards.


This is a special kind of credit card that requires an initial deposit. Secured Credit cards are a very useful tool in building or improving a credit history, useful for those with no current history. Opening a secured credit account is pretty easy, you are required to deposit a minimum amount of money in a bank account, his deposit is typically around $200 or more, this will serve as collateral, and you will be given a credit limit equal to your deposit. Secured credit cards help by adding positive information to your credit history.


Use the card, often

The point of getting the card is for it to be used. It is advisable for one to use the card every month, for small payments, you could use it for payment of groceries or other minor utility products, this will help you build a longer positive credit history. This will also help you maximize rewards points, which in some cases are cash payments

Pay your balance in full and on time

This will help you demonstrate a healthy and responsible use of your credit card. It is very important that one keep a low balance, as this carries a huge percentage in the calculation of credit score. The promptness of payment helps add up positive information and ultimately increase one’s credit score. Accruing interest and having a high balance month after month has huge potentials off dropping credit scores. One way to keep tab with this is by using automatic payments options or by making multiple payments monthly.

Keep your utilization low

There is no direct rule on the percentage your utilization should be, but people with excellent credit scores have been found to have very low utilization rate, some of 7%. But there has been the advice of keeping one’s utilization rate at lower than 30%. So say, if your credit limit is $1000, you should be targeting not using more than 300$.

Subscribe to a credit scoring service

This will help you keep tab of your score and help you make corrections with your issuer or make adjustments with your habits.

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