Tips For Building Credit When You’re Starting Out

By Hong Haojun on January 30, 2010 In Uncategorized

Many do not realize how important it building credit is these days. Whether you ever plan on financing a car, buying a house or refinancing a house, credit is all looked at very well. Even future employers that you may have could want to see you credit score. It will not reflect very well on your character if you have a bad personal credit profile.

A credit report will give lenders and even employers an understanding of what kind of person you are and how responsible you have been with your finances. You can build credit in many different ways. When you’re starting to build credit it is best to pick up a few beginner credit cards such as visa from your local bank. After you make few transactions on your card you will want to pay off the balance at the end of every month. It is actually more beneficial to pay just over the minimum monthly payment required and to keep a little debt.

When you pay off your monthly payment and keep a little debt it will show the credit bureaus that you are responsible and can use credit properly without over spending. Once you are able to do this you will be well on your way to developing good credit. You should then get another credit card or a gas card since they usually are not too picky about your scores. Your scores will be lower when you start out. Probably around the 650 ranges but overtime when you act responsibly they will slowly grow very nicely for you.

I hope this helps you build your credit score to as much as you want.

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