In the previous parts, you got to know the first two steps to build an impressive credit history. Here is a brief rundown on the remaining two steps. Do not forget to go through the final checklist that I have included in this article.

Step IV: Length of Credit History
Even if you are not using your credit card, do not get it cancelled. Do understand that the longer the length of your credit history, the better your credit rating will be. Therefore, the best strategy is to keep the credit card up over a period of years. If you follow the first three steps religiously but do not take care of the length of the credit, all your efforts will go in vain. Always remember, even if you have stopped using a credit card, it still plays a vital role in establishing the length of your credit. You will be rewarded with a healthier credit report if you do so.

Steps V: Types Of Credit
The type of credit that you use is another factor that you have to focus on. For example, if you are using only unsecured credit cards, that will get you a small negative mark on your credit history - even if you are taking good care of all the other factors. The best way to handle this problem is to get some other forms of debts along with credit cards. For example, you can get a car loan or a student loan. However, such moves are recommended only if you already have an existing positive credit. In such cases, getting new forms of debt will boost your credit further.  However, this is a minor factor. The best strategy is to get credit first and pay it back on time.

Final Checklist 
So, here is your final checklist that you have to follow in order to build an impressive credit history.

1. The first step is to get a credit card. The easiest way is to get a secured card.
2. Do not use the card frequently. The idea is to use it for a small number of purchases - occasionally. For the rest of the times, it is better to get the card locked in a safe place. This way, you won't be tempted to use it without rhyme or reason.
3. Make sure that you make all the payments on time.
4. Apply for a loan of some sort, such as a student loan - if that seems reasonable in the course of your financial life.
5. Last, but not the least, do not forget to check your credit reports on a regular basis. The objective is to make sure that there are no errors in the report. If any, get them corrected immediately.

The credit history plays a very important role in your financial life. Therefore, make sure that you take care of all the components that affect your FICO score. In the next article, I will explain more than a dozen signs when you need to call a debt management expert or a credit counselor.