The road to good credit can be filled with obstacles. Below are some tips to get you there quicker, and with a few less bumps!
A solid credit score is just around the corner...
Only borrow what you can afford and don’t try to keep up with the Joneses. It’s wisest to start with only one credit card.
Pay your credit card(s) off in full every month. If you make a larger necessary purchase like a computer for school, and must pay it off over time, pay as much as possible monthly. Interest can add up in no time.
Only utilize 30% of your credit limit at a time, and at the max 50%.
And of course, make all of your payments on-time. This is the largest component of your credit score (35%).
Leave your oldest credit account open. Length of credit history accounts for 15% of your credit score.
Already hit some bumps?
Request your credit report annually
Catch up on missed and late payments
Going forward pay on time!
Pay credit card debt down as soon as possible
(Remember: Installment debt, like home and car loans, is looked on more favorably.)