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Your credit score is out there representing you to whoever cares to look. This impacts nearly every financial move you make and is one of the key pieces of the credit decision making puzzle. But as my son found out upon his recent college graduation, how do you build a good credit history if you don’t already have one? The credit markets are tight, and very very restrictive.

For the first-time home buyer, creating or improving a credit history is often a top priority. Here are some ways to build or repair a credit profile.

The easiest and quickest place to start, is with your bank.
Having a good long standing relationship with your bank is one of the best ways to grow your credit record as this normally allows you to obtain a bank card.
You can also get a secured credit card or bank loan against a deposits that you have at the bank. With this process, you are guarnteeing any balance on the card with the money you have in your deposit account. Secured cards are a great option if you are unable to secure credit any other way. Just make sure that your bank reports the secured account to a credit bureau.

A second option is a store credit card
These credit cards are becoming harder and harder to obtain, however, often they are easier to obtain than other accounts. Unfortunately, you will end up paying a hefty interest rate when you are still establishing credit. After six to twelve months, once you’ve established some credit history with your bank of the department store, you are often able to obtain a lower rate. Having a long-term relationship with a creditor, whether or not you use it, is another way to increase your credit score.

A third way to increase your credit, is to become an authorized signer on another persons account.
Becoming a signer on a relative’s existing account allows you to reap the benefits of someone else’s good credit and this helps you establish credit for yourself.

Last, continue to practice good credit habits
Once you’ve established a credit profile, continue to slowly build solid credit habits by keeping your debt in line, charge only what you can pay off each month, and if you make any large purchases, make sure they are for less than thirty to forty percent of the total balance and pay this down as quickly as you can. The standard are changing all the time, but lenders like to see at least two years of good credit history before considering offering a loan.