A few months ago we posted an article on the first set of tips for building proper credit history.
Let me take you through another important step.
Have multiple credit cards
In the previous post we spoke about the importance of having at least 1-2 credit cards open. The truth is that it’s best to have at least 2-3 credit cards.
The reason for that is to show the credit lenders that you are capable of handling multiple credit lines. This includes making on-time payments on these cards, paying the fees, and so on.
Take cards from several banks
When you apply for your first few credit cards, make sure to get cards from a variety of banks.
It would not be wise to put all your eggs in one basket. So get several cards from several banks so that even if one banks shuts your account, you don’t lose all your cards.
Have a mix of credit
Not only should you have a few credit cards open, try to add in different types of credit lines. You can lease a car or get a mortgage. These accounts will be reported on your credit report and will make your report the home of a mix of credits. The lenders are happy to see a healthy mix of tradelines.