Everyone, from your boss to your mortgage lender, will be checking your credit score, so it’s best to begin building good credit at an early age. The better your credit, the easier it will be to rent your first apartment, buy your first car, or secure a loan on your first home. Take a look below to learn tips on how to build your credit history:
1. Open a Savings Account
Before you start building your credit, you should start a savings account. Many people fall into credit debt, because they don’t have cash on-hand to pay off their loans and credit cards. The best way to ensure you don’t get into trouble down the road is to get in the habit of saving at least 10% of your paycheck. Once you’ve built up a cushion, you’ll be ready to begin building your credit history.
2. Apply for a Credit Card
Once you’ve mastered the savings account, talk to a banking representative about applying for a credit card. He will run the numbers based on how much you make each month and what you have in savings. Then, he will let you know what limit you’re qualified for. Within a few days, you’ll be able to use your credit card for expenses, large or small. However, make sure you always have enough in savings to pay back the entire amount you put on your credit card each month. If you’re only paying the minimum balance, you’ll start racking up interest, which could quickly become overwhelming.
3. Seek Financial Help When Necessary
Many people don’t seek financial advice and assistance when their finances begin spiraling out of control. Because of this, their debt quickly builds up to an unmanageable amount. A little debt is much easier to control and recover from, so get the help you need as soon as your finances start slipping out of your control.
You can start building your credit history today by visiting Jeanne D’Arc Credit Union in Lowell, MA. We’ll help you open a savings account, apply for a credit card, or qualify for a loan. We can also help you get in control of your finances, so call us today at (978) 452-5001.