Tips for Building Good Credit
• Putting good credit habits into action takes self-discipline. You’ll have to tell yourself “no” when you want to use your credit card to make a purchase but can’t pay your bill in full at the end of the month. Know the Dos and Don’ts of Using Credit Wisely.
• When you put money aside to pay your credit card bill, make sure you don’t spend it on something else before your credit card statement arrives.
• Most credit cards allow you to view your account activity online. If your credit card gives you this ability, sign up so you can monitor your credit card balance and pay your bill online. You can even sign up for paperless billing statements which allows you to receive your statement online instead of regular mail.
• Start out with just one credit card, so you can keep your payments manageable. Having several credit cards is tempting, but it’s easy to accumulate too many credit cards. Several balances and due dates can cause confusing and lead you to debt and a damaged credit score.
• You can stop credit card offers so you won’t be tempted to open new credit cards. If you choose to opt-out temporarily while you get used to credit, you can opt-in later to survey better credit card deals.
• There may be months that unexpected expenses keep you from paying your balance in full. During those months, make at least the minimum payment and don’t increase your credit card balance by making more credit card charges.
• If you know you don’t have the money to pay your credit card balance, put the card away. Don’t use it until you can afford to pay new charges again. This is the benefit of paying your balance in full – you don’t have to worry about maintaining a balance if your income decreases or other expenses increase.
Building a good credit score takes time so don’t try to rush it. Use credit responsibly and a great credit score will follow. If you start out with great credit habits, you won’t have the difficult task of repairing your credit score later on.
