The Road to Good Credit

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.)
• Avoid closing oldest credit cards
• Avoid applying for excess amounts of credit
  • Shop for loans in a short period of time
• Options for if you are in over your head
  • Payment Plan with creditor
  • Non-Profit credit counseling

Want to know more?

We have a video for that! Check out "Monitoring Your Credit" by our Financial Literacy Peer Educator: