Building Your Credit History – Improve your Credit File
There are many ways to begin building your credit history. For example, if you are a college student, many credit card issuers offer special promotions and deals for students. These can be a great help to you in building up your history, but you need to make sure that the credit history you are building is a good one. If this is your first credit card, you may be tempted to put a lot of purchases on it…and that is fine, BUT you must make sure you make your monthly credit card payments on time, in full and ideally more than the minimum balance, each and every time to maintain a good credit rating. When you are not used to how credit cards work, it is easy to get yourself into debt, and that will not give your credit history the positive stuff lenders look for when reviewing a loan application or similar.
Secured credit cards
A secured credit card is good for anyone that has no credit or poor credit, because it is easier to get approved for, and it will also help you build or rebuild your credit history back up so it is in good standing again. A secured credit card will have a spending limit, and that spending limit is set by how much collateral you put down as a deposit on it when you apply. For instance, if you put up $250, then your card will have a limit of $250 dollars.
Using a secured credit card to make small purchases that you faithfully pay off every time the bill comes due is a great way to build up your credit. In time, if you keep your card in good standing, you may be able to then apply for an unsecured card that does not require a deposit.
There are other simple ways of starting a credit history. Applying for a credit card for a retail store is a good idea. These cards tend to have low credit limits, so you can make small purchases that you can easily pay off. Having a cell phone and paying your bills on time every month will also help.
Don’t Miss Repayments!
Beginning to build your credit history is obviously very important, but there is another part to it that is absolutely necessary. Once you get off to a great start with that credit, you need to keep it that way. Your credit history registers whenever you make a payment or default on a payment – defaulting means you missed a payment. Being late on payments is not going to help you, either, so you must endeavor to pay off your entire monthly bill each time it comes due in order to keep your credit in good standing.
And while you are being diligent about paying your bills on time, you must also be diligent about making sure your credit history is accurate. By periodically checking your credit report, you can catch any inaccuracies and have them corrected as soon as possible. That way there will be no accidental black marks to mar the credit reputation you have worked so hard to build up.
Your credit history demonstrates that you are a responsible person that can be trusted to pay back any monies you wish to have loaned to you. When you pay your bills on time, it shows lenders that you can indeed be trusted, and this is what will spur them into approving your applications. The sooner you start working to build up your credit history, the better off you will be later on down the line when you are ready to make a major purchase like a home or a vehicle.
Apply for a low interest rate credit card and pay your bills on time to improve your credit history.
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Compare Australia's Best Zero Credit Card Offers
St.George Vertigo MasterCard
The St.George Vertigo MasterCard is the ideal low rate shopping card. Save with an amazing introductory offer on both purchases and balance transfers for the first 6 months. Also enjoy instant discounts and added extras with the St.George Instant Benefits Program
- $55 annual fee
- 12.49% p.a. on purchases
- 2.99% p.a. for 6 months on balance transfers
- Cash Advance Rate of 21.24%
- Comes with free secure online shopping service
Click here to read the St George Vertigo terms and conditions
Compared below are a handful of the best credit cards with a 0% balance transfer offer or a $0 annual fee. Enjoy the best rates and fees on your credit cards - zero!
| Credit Card | Card Details | Interest Rate (p.a.) | Cash Advance Rate fee (p.a.) | Balance Transfer Rate (p.a.) | Annual fee | Interest free days (up to) | |
|---|---|---|---|---|---|---|---|
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Best Zero Percent Credit Card ANZ offer one of the lowest rates on the market at 13.24% p.a, along with ANZ Falcon security and a 0% p.a.balance transfer offer. |
13.24% | 21.49% | 0% p.a. for 6 months | $58 | 55 |
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Take advantage of a card with the prestige and status of Platinum but with a low interest rate of 11.49% p.a. Enjoy Citibank World Privileges, offering entertainment & retail discounts worldwide. |
11.49% | 21.24% | 0% p.a. for 6 months | $49 first year (Save $50) | 55 |
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Featuring 1.9% p.a. for 12 months on balance transfers a low ongoing 12.24% on purchases and a $39 annual fee. |
12.24% | 17.99% | 1.9% p.a. for 12 months | $39 | 55 | 
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No annual fee ever. Up to three complimentary cardholders for free. 5.99% p.a. for 12 months on balance transfers Click here to see this card at BankWest.com.au |
16.99% | 16.99% | 5.99% p.a. for 12 months | $0 | 55 |
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Best Zero Annual Fee Card Enjoy a generous rewards program and up to 44 days interest free on purchases at no annual fee, ever. You have the flexibility to opt in for a $80 annual fee if you wish to double your reward points. |
20.49% | 20% | - | $0 | 44 |
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The Vertigo MasterCard is one of Australia's most competitive low rate cards. Comes with St George Instant Benefits which offers discounts on selected retail and entertainment. |
12.49% | 21.24% | 2.99% p.a. for 6 months | $55 | 55 |
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