A good credit history is essential to get a credit card or any other type of loan. Lender considers the FICO score to decide whether they can give a loan  to the individual or not. You don’t need to have a good credit score to open a bank account. However it is considered as a vital component for getting a credit card or any other type of loan. Lenders also look at your employment history before giving you a loan. If you have a steady job ,then you have a better chance for getting a loan. Some Lender also considers a stable residence. Owning a house gives you an increased chance of getting a loan. Even though you don’t have a good credit score,  having an electric or gas bill, telephone, cable, or water service in your name,increases the chance of getting a loan .A bank account is a must for any individual seeking a loan and one must also care to maintain it well.A well maintained bank account proves that you have the capacity to manage .It also makes the lender believe that you are trust worthy.

Setting up a relationship with a bank increases your chance of getting a loan. If you do a business with a bank, it helps you to have some impact when you are seeking credit as they value your business. Having a departmental store card may help you in establishing your credit. However this has a disadvantage of high ongoing interest rate. Before getting it make sure you find out whether they report to the credit bureaus. Maintaining a good payment history leads to  proper tracking of records. If you don’t get a loan, you can finally depend on the secured credit which is very easy to get. It means that there is an asset linked to the account and if an individual fails to repay ,then the lender will take your asset. Establishing a good credit takes time since it depends on a number of factors such as payment history, length of time you had the credit. The ultimate step is to maintain a good credit once you have established it.