How to Establish a Credit Record

So, you've always paid for everything cash, and never had to take a loan? You probably think that's a good thing, but the truth is, if you ever do want to buy something on credit, you will find that you might have difficulty accessing it. That's because banks and other lenders will not have any record of your payment history. They will be unable to assess your payment habits, and they will be unable to assess their level of risk. That's why it's worth establishing a credit record now, even if you don't strictly need it. A simple way to do this is to apply for a Store card or credit card. Make small purchases, and pay them back every month. As you develop a reputation as a good Payer, your credit score will be raised, and you will be able to access credit when you need it.