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2.7. Building credit history

Your credit history is made up of previous and current forms of credit, including credit cards, loans and some utility accounts. This information helps lenders decide whether or not to approve you for new loans.

Getting a credit card can help you establish credit history so that lenders see you have experience with managing money. If you use a credit card responsibly by making payments on time and regularly paying off the balance, some of these details will also be included on your credit history and could increase the chances of loan approval in the future.