How do I build a good credit history?


#1

I want to take a loan for my new business. How do I build a credit history that will help me get one?


#2

Here are a few tips to improve your credit history:

  1. Establish a good personal credit score, by taking smaller loans and servicing them in a timely manner.

  2. Start with a secured loan and make sure you make all the payments on time.

  3. Take loans only if you have the means to pay them off. Clear off the existing debts, before taking any new credit.

  4. Have a mix of different types of credit, and service them on time - this will increase the institution’s faith in your repayment abilities.

  5. Avoid closing credit accounts all at once - do it one at a time.

  6. Borrow from institutions or investors that report to the Credit Bureaus - this way your credit history will be registered with them.