Establishing Credit History

You might find it ironic, but having credit is not enough. Let’s assume you have four credit cards, but have rarely ever used them. In fact, there is no balance due on any of them and has not been for the last two years. This actually can hurt you because the lender cannot determine how well you pay back debt. If this is your situation, take up to 80 percent of the credit limit with the “convenience” checks and stick the money in your savings account. Pay a bit more than the monthly minimum payment for three months, then pay all the cards off with the money in your savings. Now you have a stellar borrowing history.

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