Matthew Davies Provides Tips on Building New Credit


Building a good credit history enables you to avail loans or any other forms of credit. People are more likely to lend you if you have a reliable credit history or repay your debts on schedule. Matthew Davies has a few essential tips that can help you build towards a new credit history, one that will significantly benefit your finances. Without further ado, let’s get started.

Tips & Tricks

  1. Apply for a Secured Credit Card – Secured credit is different from a normal or an unsecured credit card. In an unsecured credit card, you won’t have to provide any collateral. The financial institution offers the card based on your credit score and other factors.

However, in case of a secured credit card, you’ll have to provide collateral in the form of a fixed deposit. Depending on the financial institution, you can obtain a credit card based on 75-80% of the total deposited amount.

Secured cards don’t offer much in terms of benefits, but it is a great way to build your credit history. Banks and other financial organizations are more likely to provide a card as you are providing collateral.

  1. Find a Co-Signer – A co-signer is someone who acts as the guarantor. When signing the contract, the co-signer agrees to repay the amount if you cannot pay back your loan. In other words, they are responsible, so you would want to talk it over with them before applying for the loan.
  1. Timely EMI Payments – Prioritize paying EMIs as early as possible. Timely payments count towards your credit history and mark you as a responsible customer in the eyes of future lenders. Failing to pay even a single installment can tarnish your clean record. 
  1. Authorized User – Among the different requirements demanded by financial institutions, one common requirement is that you have a stable source of income. Becoming an authorized user is one of the more efficient ways to strengthen your credit record. 

You do not have your own credit card to benefit from this scheme. Just ask a family member or someone close who is willing to add you as an authorized user, and in doing so, you add their credit card payments to your own credit history. 

However, make sure the individual has a sound credit history. Otherwise, you will be on the wire for quite a bit of money. 

  1. Avail a Secured Loan – A secured loan, also known as a credit builder loan, is a type of loan where you have to provide collateral in the form of forced savings. You avail a loan against your own money that you have deposited in the bank.

After availing a loan, the lenders hold your money until you have repaid the entire loan amount. Financial institutions usually grant the funds since they already have collateral if you are unable to repay the amount. There is no risk involved as you are borrowing from yourself, and it helps you build your credit history from scratch.


Given how challenging it can be to build a credit history for the first time, Matthew Davies has compiled the above list. Even if you have had a prior credit history, these few tips will help you build one in the most efficient way possible.

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