Getting good loan terms often depends on a good credit history. How can you go about building a good history when you’ve never had credit or never had good credit at all? Here are a few tips to make it easier.

Get a credit card and begin to build credit. Start slowly. You must have a credit card to build a credit history. If you never missed a payment simply because you never had a payment to make, banks won’t know whether to take a chance on you or not. If you do not have a credit card in your name, apply for one. Usually there are many pre-approved offers arriving daily in the post—take advantage of one, even if you don’t plan on using it. Start out with one with a small credit limit and charge a few things a month. Don’t go overboard and charge what you can’t afford. Having a credit card and managing it well is a good step towards stellar credit. Unlike a car loan, in which the lender tells you what you’ll pay each month, you must personally manage a credit card, deciding how much to charge and then how much you’ll pay. This, more than anything else, shows prospective lenders that you are responsible with your finances.

Pay off your current debt responsibly. Add up all the debt you currently pay—mortgage, car finance, credit card—and if it’s a high percentage of your income, work on paying those off and getting your debt load down before you apply for new credit. Always pay on time and make at least the minimum payment, but do your best to pay all you can.

Watch out for enquiries. When you apply for a bank account, new credit card, or even a brokerage account, the lender will take a look at your credit report to see if anything’s amiss. These enquiries are listed on your history for two years. Too many enquiries in a short period of time can bring down your score as it may signal to lenders that you are trying to take on more credit than you can handle. You can look at your own credit report without a listing appearing.

Don’t close old, unused accounts—yet. If the first credit card you applied for 10 years ago isn’t as appealing as your new plastic and you’d like to close it, think again. Your oldest account shows that you have a responsible credit history going back years, so you’ll want to leave that open. If you have too many credit cards, however, your score can go down from too much available credit. On the other side of the coin, when you close an account your credit-to-debt ratio goes down, which also may negatively affect your score. Think about your individual circumstances before closing a card. If you have a high credit score already, just leave things as they are.

Add a Notice of Correction to account for any oddities. If you missed a payment due to illness or an extraordinary situation, Experian allows you to add a note to your report, which lenders are then obligated to view when looking at your history.

Watch out for old associates bringing down your credit. Your report will include a section with financial associates of yours—those with whom you share credit cards, loans, or mortgages, along with their credit records. If your associates have a poor credit history, it may reflect badly on your own report. In this case you may want to cancel any shared cards and notify Experian if you no longer have association with these persons.

Don’t fall victim to identity fraud. Keep your private information to yourself—don’t tell anyone your details unless they must know them. Use a shredder. Don’t give away information on the phone or Internet to dodgy dealers.