A great credit history doesn’t just happen – it is a result of conscious effort. Students, homemakers, divorcees or any other consumer who may need to build or rebuild their credit history will be helped by the following tips:

  1. Open a bank account. Here’s a basic step that’s sometimes overlooked by people seeking credit. Opening checking and savings accounts is also one of the few things you can do as a minor to start building a financial history. A savings or checking account may not affect your credit score directly, but the account activity will demonstrate your stability and ability to handle money responsibly. However, you need to remember that writing bad checks or overdrawing from your bank account are negative indicators to lenders and damage your credibility.
  2. Apply for a low credit limit or student credit card. Plan to pay your balance off each month and follow a budget. If you must carry a balance, never pay late and don’t exceed 30% of your available credit line. Make sure to include your student status on your application; full-time students often are given a lower initial credit limit to help build a healthy credit history.
  3. If you don’t qualify for a regular credit card, apply for a secured card that requires a deposit of money with a lender. Your credit limit is usually equal to the amount on deposit. But be careful of high rates and punitive fees that may be part of the terms with some of these offers.
  4. Get a store credit card. Department store and gasoline credit cards are generally easier to obtain than major credit cards such as a MasterCard®, Visa®, or Discover®. These cards don’t do as much for your credit score as a bank card (Visa, MasterCard, Discover, etc.), but they’re usually easier to get.
  5. Apply for a small loan and repay it promptly and on time. To increase your chances of being approved, plan to apply a large down payment on the loan. If your application is denied, consider getting someone with an established credit history to co-sign on your behalf.

If you make all payments on time and never go over the credit limit, over a period of years your credit history will be in good shape. Even better, the longer you keep it up, the better your credit score will be (up to roughly seven years).

Financial institutions must make credit equally available to all creditworthy applicants. Under the Equal Credit Opportunity Act, you have certain rights that protect you against unfair credit discrimination. Under this Act, you cannot be denied credit because of your age, sex, marital status, race, religion, national origin, income from public assistance, intent to have children or birth control practices.

If you suspect discrimination by a bank, savings and loan or credit union, ask for the name and address of the federal agency that enforces the Equal Credit Opportunity Act (depending on the institution, this will be either the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision or the National Credit Union Administration). The Equal Credit Opportunity Act mandates that the creditor must give you this information.

For additional articles and resources on everything you need to know to apply for a credit card, please visit WowCreditCards.com and check out the many instant credit card applications.