Credit bureaus are the places that collect all your data and store it in a centralized location. You can access your credit report, along with other services, at any of the three major credit bureaus: Experian, Equifax, and TransUnion. There are two types of credit: personal and business. A personal credit score (or FICO score) measures how well you manage your personal finances such as your spending habits and repayment history on loans or credit cards. A business score (or Business FICO Score) measures how well you manage your commercial borrowing such as your company’s reputation with suppliers and vendors.

Personal credit history is important in today’s world. It is required for important life events like buying a home or getting financing for your business.

It is quite difficult to build credit if you have no credit history. One way to start building your credit is to open accounts in the following order:

  1. Opening an account with a small balance to start building up your credit, then open another account with a higher balance, and slowly work your way up.

  2. You can also build your credit history by getting a secured card. A secured card requires an upfront deposit that is usually equal to the amount of available funds on your card when you receive it. This serves as collateral in case you incur any charges on the card without paying them off in

  3. Open an account with the bank where you’ve had your checking account for at least six months. This will typically be the bank that provides loans for your other large purchases like cars and homes.

    • An easy way to establish yourself as a borrower is to ask the bank for an unsecured personal loan of $1,000. Pay it off promptly and on time and you may see better rates on future loans.

  4. Once If you have good credit, then opening a credit card might be your best option for increasing or building your credit score.

This process will take anywhere between 6 months to 2 years, sometime 5 years. It is slow process but need to plan well in order to build the great credit history.