A Good Credit Score

A Good Credit Score

How to build good credit as a young person: Personal Credit for Beginners

In today’s market where lenders are changing their regulations on who they lend to, it has never been more important to build good credit. As a young person, building credit is probably the last thing on your mind. It should be a consideration, though. If you want to enjoy the benefits of low interest rates and easy borrowing, then you must take proactive action to build good credit at a young age. There are certain ways of going about this and each person must be sure to do all of these.

Piggyback off of the parents
Don’t be afraid to use your parents a little bit in order to help build your credit. If you are blessed to have parents who have good credit, then they can help you establish credit. Talk with them about putting various things in your name in order to build your credit. Certain bills around the house and perhaps even a car payment can be put in your name. Though your parents will still pay for these things, your credit report will reflect that you made the payments.

You might also want to look into having your parents co-sign on your first few credit applications. This will help you secure a lower rate and protect against anything unexpected that might happen. A family with good credit history is something that you absolutely must take advantage of, so be sure to exhaust all of those options.

Think about a secured credit card
Before getting a secured credit card or a credit card of any other type, you might want to take a minute to read this great article about credit card rates and secured credit cards   from Bankrate. It will help you address some of the issues and questions that you will undoubtedly have in regards to the credit card.

A secured credit card is a great way to build credit for a young person. When you get a secured card, you have to make a deposit to an account which will fund the card. This takes out much of the risk for the bank and helps you learn to use your credit card responsibly without the risk of missed payments or fees. In addition, it will establish a good credit record for you to go forward in the future.

Consider a gas station card
Though many credit cards are difficult to qualify for under the current market conditions, there are a few lenders who are still looking to give out cards. Gas cards are an excellent way to not only get your feet wet, but to keep up with your gas expenses. You will be much more likely to qualify for one of these cards and start building your credit from there.

If you are looking for new, inventive ways to build your credit as a young person, then read this good beginning credit advice  from Newsweek. There, you will see that you are not alone in looking to build your credit wisely as a young person.

Building credit as a young person is not easy, but it’s necessary. Today’s market demands good credit and in order to qualify for many of the important loans that you will need later in life, you will have to own a good record of bill payment. These methods will help you get there.

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