Building a Solid Credit History

• 1). Obtain your credit report for free by requesting it at AnnualCreditReport.com (see Resources section) or at 877-322-8228. Review the report, and notify the credit agency immediately of any errors.
  
  
• 2). Apply for a secured credit card to start building a credit history. Credit history determines 35 percent of the FICO score.
  
  
• 3). Bring any late payments current. Late payments diminish a score; being current raises it.
  
  
• 4). Make payments on time every month to build a solid credit history.
  
  
• 5). Pay down large balances first. Being maxed-out causes credit scores to slip. Debt-to-credit ratio is 30 percent of the FICO score.