2.) Apply for one credit card. You do not need a myriad of credit cards to prove that you are willing and able to pay your bills. One does the job just as well as five or six. The easiest ones to acquire when you are getting started are department store cards and gas cards.
3.) Put bills in your name as much as you can. Utility company bills are often reported on your credit and their presence goes along way toward boosting your credit score.
4.) Take out a small loan. A small loan will involve paying interest, which is always on my short list of nevers, but in this case the means are definitely worth the end. This is an excellent way to establish a credit payment history.
After you have established a credit history, you must build the credit history as carefully as you would build your home. After all, this is where your financial dealings live to tell the story of you. So make sure that you use your credit responsibly. There is no worse feeling than working hard to get credit cards and build your savings only to throw away all of the hard work by making poor choices. To that end:
1.) Use no more than 30 percent of the credit that you have. When you use too much of your credit, lenders may see this as a red flag and may question whether or not you are overextended.
2.) Pay your balance in full as often as possible. This is one of the reasons that starting with a department store card is ideal. The credit limits are often low and don’t leave much room for you to dig yourself into a hole.
3.) Charge only what you can pay. Overextending yourself to the point that you are unable to meet your minimum obligations is a sign of financial immaturity. No lender, client or employer wants align himself or herself with someone who will not make the effort to think through their actions before the commit them.
4.) Check your credit report at least once a year. This is very important. Not only does your credit report indicate to lenders your fiscal responsibility, it also helps you stay on top of your credit. Creditors can make mistakes and it’s your responsibility to find and initiate correcting those mistakes. Remember your credit is your responsibility.
Getting and maintaining a good to excellent credit score is not difficult. It simply requires diligence and responsibility. Anyone can do it.
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