A credit file contains important information about you, such as the amount of your salary, the regularity of your payments, bankruptcies, and the like. These data give loan companies an idea of whether you’re eligible and trustworthy enough to be granted a loan. Establish a new credit file and manage your credit activities to make a good impression.
- Apply for a credit file. When applying for consumer or commercial credit, you establish a credit file. If you don’t have a credit file previously, request for an application form. You’ll be asked about your name, aliases or alternative names you’ve used, your addresses and contact details, and your birthday. You don’t have to supply all the details that are normally found on the credit file, because credit reference agencies automatically do that for you.
- Apply for a credit card. Whenever you apply for a credit card, the company will look into your credit file. If you don’t have one yet, they’ll make you one. To create one, they’ll refer to your credit card application form and proof of your identity, such as IDs, your name on utility bills, etc.
- Open a new bank account. Bank account transactions are monitored by credit reference agencies. To have a record in your new credit file, conduct financial transactions through a bank account. Meet the requirements to maintain the account such as paying the maintaining balance, the banking fees, etc. If you have a good record with your bank account, you’ll be eligible for credit and get a credit file.
- Get a checking account. Issuing checks is a form of borrowing money, because checks serve as a promise that the amount written on them will be paid. Open a checking account and use it. Never give checks unless you’re certain that there’s money in your checking account to pay for them. If you obtain a good record with your checking account, the bank and other loaning agencies may give you a loan if you ask for one.
- Obtain a store card. Groceries, malls and department stores often give cards that allow you to buy their items on credit. Choose the stores that send reports to credit agencies. Pay the items on time. If you can’t pay at the date mentioned, ask for an extension and do your best to have the amount of money you need.
- Apply for insurance. Insurance companies check your status and background, including your credit history. When you don’t have an existing credit file, they’ll assist you in creating one. Provide the complete and necessary information that’s required from you.
- Request for a loan. Lending agencies assess your eligibility for a loan. One thing they’ll check is your credit file. Likewise, they’ll help you create one if you haven’t acquired it previously. It’s better if you have a good relationship with banks and crediting companies to create a new credit file without hassles.
When a credit file is established, the information in it is recorded indefinitely. However, some details are kept for a certain period, such as one to six years. No matter how long the information is kept, it’s best if you maintain a good payment record to make your credit file attractive to credit agencies.