How to build your personal credit

Building or rebuilding personal credit takes time and consistent effort. However if you want to start a small business it is essential to get this correct.  It is not an easy or instant fix. Here are five strategies to help you improve your credit score:

1. Check Your Credit Report Regularly:

•   Obtain a copy of your credit report from each of the major credit bureaus (Equifax and TransUnion). You are entitled to one free report from each bureau annually.
• Review the reports for any errors, inaccuracies, or fraudulent activities. Dispute any discrepancies you find.

2. Pay Your Bills on Time:

• Consistently paying your bills on time is one of the most crucial factors in building good credit.
• Set up automatic payments or use reminders to ensure you never miss due dates for credit cards, loans, or other obligations.

3. Reduce Credit Card Balances:

• Aim to keep your credit card balances low relative to your credit limit. A lower credit utilization ratio (the ratio of your credit card balances to your credit limits) can positively impact your credit score.
• Pay off high-interest debts first or consider consolidating debts with a lower-interest option.

4. Diversify Your Credit Mix:

• Having a mix of different types of credit, such as credit cards, installment loans, and retail accounts, can positively impact your credit score.
• However, only open new credit accounts when necessary, and avoid opening multiple accounts within a short period.

5. Establish Positive Credit History:

• If you don't have much credit history, consider opening a secured credit card or becoming an authorized user on someone else's account to build positive credit.
• Use credit responsibly and avoid closing old accounts, as a longer credit history can have a positive impact on your score.

When you are young, getting a student credit card is a great way to start the process. Just use the same principles above and pay off your balance every month.



Remember that improving your credit score is a gradual process, and there are no quick fixes. Be patient, stay disciplined in your financial habits, and monitor your progress regularly. Additionally, seeking guidance from a financial advisor or credit counseling service can provide personalized advice based on your specific situation.