Building a solid credit history

A solid credit history can be one of your most valuable financial assets. A record of responsible borrowing and on-time payments can help you qualify for credit when you need it.
 
Credit reporting agencies gather financial information about individuals and make it available to lenders. This includes details like your borrowing history, account balances, payment activity, and how long you’ve had credit.
 

How to build a strong credit history

Here are a few key habits that can help you build and maintain a solid credit profile.
 

Borrow within your means

Keep your borrowing at a reasonable level relative to your income.
 

Pay your bills on time

Even one missed payment can negatively impact your credit history—even if it’s paid later.
 

Manage your credit card balances

Try to keep balances low compared to your credit limits.
 

Pay down balances over time

Reducing what you owe shows consistent, responsible credit use.
 

What can hurt your credit

Certain behaviors can negatively affect your credit report and make it harder to qualify for loans.
  • Filing for bankruptcy
  • Having too many credit cards
  • Applying for credit too often
  • Late or missed payments
  • Increasing credit card balances
  • Carrying balances close to your limits
Lenders review your credit report along with your ability to repay, your financial habits, and any collateral when making lending decisions.
 

Check your credit report regularly

It’s important to make sure your credit report is accurate and up to date.
 
You’re entitled to one free credit report each year at:

You can also contact the credit bureaus directly:
If you find an error, contact the credit bureau to have it corrected. Most negative information remains on your report for seven years, while bankruptcies may remain for 10 years.
 

We can help

If you have questions about your credit or want guidance on building a stronger financial foundation, we’re here for you.
 
Call 1‑800‑288‑3425, send us a secure message in Think Online, or visit any Think Bank branch to talk with a team member.