How can I build credit history for my credit report?

It is important to begin building your credit history early. If you do not have a credit history, it is much harder for lenders to make a decision about you, since they have nothing to base it on.

One of the best ways to build a credit history is to apply for a credit card and make your payments on time.

It can sometimes be hard to get a regular credit card if you are a young person, a recent immigrant or have had trouble with credit in the past.

An option is to apply for a secured credit card. You need to provide the credit card issuer with a deposit. Usually, the amount required for a deposit is equal to the credit limit for the credit card. When you make payments on the balance of a secured credit card, it will be reported to the credit reporting agencies in the same way as a regular credit card. This can help you build a credit history or rebuild a poor one.




Are secured credit cards and prepaid cards the same thing?

No, they are not the same. A secured credit card can help you establish a credit history. However, a prepaid card will not help you build a credit history because your use of it is not reported to the credit reporting agencies.