The importance of building and keeping a good credit history in today’s society cannot be underestimated. Over time, as the percentage of cash-based transactions has declined, credit ratings play an increasingly important role.

A good credit history plays a significant role in your ability to make large financial purchases. If you’re looking to take out a car loan, a house loan or similar sized investment, it is likely that you will be turned down without a solid credit history. If you have a bad credit rating, you may be faced with large interest rates to contend with.

If you don’t have a credit history, it is important to start to build one in a responsible fashion. This happens gradually through the use of credit cards, loans and other means. It is important not to feel powerless about your credit history. Over time, by adhering to a few simple rules and making good choices you can significantly affect your financial rating.

– Pay on time. By paying your bills on time every month you start to build a reputation for being financially trustworthy. You can often set up automatic payments to help you with this. If you know you’re going to have to make a late payment, contact your credit company beforehand.

– Avoid minimum payments. Where you are able, pay more than the minimum amount on your bill every month. Not only does pay down your debt quicker, but it also shows an attentive attitude towards your financial status.

– Look to open up a few separate lines of credit. It is to your advantage to have several cards that you are using sparingly. Be aware of the increased temptation to spend this will bring and curb yourself accordingly. The key is being responsible.

If you’re struggling under the weight of debt be aware of the help that is available. Credit repair professionals and counselors can help you plan to get out of debt and work towards your financial security. Don’t be afraid to ask. Good Credit history is possible and many people benefit from a credit counseling expert.