Tips for Starting Your Credit

Building your credit history

Credit is your reputation for repaying debts on time. The better your credit, the more willing companies and people will be to lend you money. It's very important to start off at the beginning establishing good habits and history.

Tips to establish Good Credit history

• Open a checking account or savings account. Checking and savings accounts do not create your credit file, but their existence will indicate that you have money and show something about how you manage it.
• Apply for a department store credit card, or a major credit card. The most common major credit cards are: Visa, Mastercard and American Express.

Once you have a Credit Card:

• Pay at least the minimum amount due on each account every month, and pay on time. Allow five to seven business days for payments made by mail.
• Use your credit card wisely, and you'll have a very beneficial financial tool. If you use your credit card unwisely, and you'll run up credit card debt you can't afford.
• Keep a record of your credit card purchases in a notebook. Utilizing computer programs, some have built in credit managers, or simply in Microsoft Excel. This is key to making sure you stay on top of your finances, and out of the red.
• Even if you pay off your balance every month, try to avoid using more than 50 percent of your limit on any one credit card.