So you many have just graduated or are just looking to get started. When getting out on your own you start realizing the importance of good credit! Whether you are looking to buy your first car, rent a place, or just buy your first home, or apartment, credit is that deciding factor between having it now or paying half of your savings to interest payments. So this is how to build and maintain your credit score.
WHERE ARE YOU?
Before we start on building, we need to know where you are first! If you already have a credit card, some provide you with your FICOS score. If you do not you can visit www.annualcreditreport.com for a credit check.
WHEN SHOULD I START BUILDING CREDIT?
Yesterday! The younger you are when you start the higher you can build your credit. Starting in your teens (18) is the best idea. If you are having trouble getting a starter card become an authorized user on someone’s credit card to get your foot in the door and piggyback off his or her payments.
WHAT ARE MY OPTIONS?
Many credit card issuers have promotions for people who have no credit card history. You might also stand a better chance at a credit union. If you want to see your options go to www.lowcards.com.
Tips: Start with a gas card and avoid traveling cards. Think about frequent payments for necessities rather than entertainment. You are 3X more likely to overspend on entertainment.
THE KEY!
The key to using the credit card and building your credit is to not use more than 30% of your limit and paying off your payments in full every month.
BUT I HAVE DEBTS
Most people have debts. If you have student loans or any other debt it would be a good idea to chip away at it little by little. As long as you pay them on time you should be fine.
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