Let's start with the basics:

•  Make a budget and pay your bills early (in the long run you will save money on interest and fees)

•  Pay down debts (high debt to income ratios is cause for concern among lenders. If your debt load is high and you are robbing Peter to pay Paul –transferring balances/paying bills with credit cards – lenders will not look favorably upon your application)

•  Stabilize (lenders tend to look more favorably upon applicants with long-term housing and employment situations)

•  Handle current accounts well (increasingly, lenders view your credit report in search of signs of trouble. If found, they could cost you in the way of higher interest and fees) So…never bounce checks, pay late, pay less than the minimum or max out credit accounts

•  Maintain accounts (if you can control your spending keep accounts open after the debt is paid. Available credit provides a more positive credit reference than exhausted or maxed out credit)

•  Keep your head out of the sand (if you've had an emergency such as illness, unemployment, etc. you must communicate that to your lender. Often, they can work with you to make suitable arrangement. Ignoring the bill/call will not make it go away)

•  Consider online banking (pay your bills with a click, no stamps or envelopes required)

Each of these steps will help you to build good credit references with time. Other things you can do include paying rent/mortgage and utility bills on time. Even if you have a number of negative credit references, you can take action today to offset them with good credit references. Each month that you pay your bills on time or pay down your debt you create a good credit reference.


If you do not have any credit or are trying to regain credit footing after bankruptcy proceedings, etc. You might try starting with a secured credit card (you deposit all or a portion of the spending limit on your credit card in an account held by the lender). Pay this bill early, in full each month. With time, additional credit options will be available to you. Make sure to choose a lender that reports regularly to a credit reference agency. You should also consider opening a savings account, which demonstrates financial discipline and responsibility.


Earning a good credit reference is easier than you think. There is absolutely no mystery or secret involved. Decide today that you will exercise patience and discipline in fiscal management. With time, the negative references will come off. Identity theft aside, you alone have the power to replace the negatives with good credit references.