The importance of good credit score in your financial life cannot be stressed enough. Your credit score will always come in the way of getting your loans approved, acquiring better interest rates or obtaining credit cards. None of the financial institutes or private lenders ever approve a loan without looking at the person's credit history. If you committed any mistakes in the past or mismanaged your finances, be assured that it will have undesirable repercussions on your credit history forever. Nonetheless, you can certainly take some measures towards rebuilding credit score. So, in case you are looking for intelligent ways to build credit score, you may benefit from reading the following tips. How to Build a Good Credit History While those with less than perfect credit scores often struggle to bring their scores at par with average credit score, those with no credit history find an altogether different challenge. These are mostly students or young professionals, who are yet to establish a credit history of their own. These people find it difficult to get loans due to lack of credit history and hence, are denied the opportunity to repay loans and build a good credit. Also, people who have to go through a bankruptcy situation often have to begin from square one. An event such as bankruptcy leaves dents in your credit report forever. Yet, if you work consistently on building good credit, you can certainly rise from ashes. Maintain Only a Few Credit Cards Applying for a credit card can be your first step towards building a credit score, irrespective of whether you need it or not. Go for a credit card company that offers affordable charges and interest rates. If you already have more than four credit cards, then it would make sense to surrender a couple of them. Possessing multiple credit cards may force you to spend unnecessarily. Hence, it is best to maintain 2-3 low interest credit cards. Keep your expenditure within 30 - 40% of your limit and make sure you pay your debt in time. Exceeding your credit card limit is not looked upon favorably by the lenders. Get a Secured Loan Getting a secured loan is the best way to build credit fast. Something as significant as a home loan can add to your credibility. However, make sure you can afford the monthly payment. If you are thorough with your payments, then a secured loan can quickly pave way for good credit score. Make sure you at least pay the minimum payable amount on time. Diligence in payment scores good marks with creditors. However, for getting a secured loan you will need an asset to pledge. Maintain Stable Employment/Residence This is particularly important for those who are just starting out. In the absence of any credit history, your creditor will evaluate your creditworthiness from the nature of your employment. If you have managed to retain your job for a long time, they rate you high on creditworthiness, irrespective of your income. On the other hand, people who switch jobs from time-to-time and spend part of their life unemployed are considered high risk candidates by the lenders. Similarly, retaining your residence for a longer time also pays well. Keep Track of Your Credit History Your every credit activity is reported to the credit bureaus by the lenders. Hence, it is imperative that the information that is getting reported is accurate. You can keep a track of your credit history by obtaining a copy of your annual credit report. This will enable you to rectify errors in your report on time and prevent them from affecting your credit score. The most important aspect of building a good credit is to plan and manage your finances properly. Allocate a budget for major expenses and keep a tab on other expenses.