Today, having good credit is more important than ever before. It used to be that if you didn't want to use credit, you didn't have to worry about credit. But these days, your credit rating can be (and is!) used for so many things -- from renting an apartment, to lowering your insurance premiums, even as far as whether or not you get a job. It's important to build a good credit history just to be a member of society nowadays.
Protecting your credit, once you establish it, is also quite important. Little things that may not have had much impact in the past nowadyas are Very Important Things. Being just a little late on your credit card payment? Your rate will probably go up. Go over your credit limit (even accidentally)? Your rate might go up, in addition to the over-limit fees you'll get charged. This article will show you what to do and what not to do.
Early on in your credit career, you'll want to find out what your credit score looks like. Generally, you can get a free report each year. Your credit report has things like open accounts, closed accounts, credit limits, and so on. Also, be sure to check that all the information reported is correct AND that it actually belongs to you. Occasionally, through an error, someone else's information may be in your credit report. If the report reflects badly on you then you will find it difficult to apply for low APR credit cards in the furture.
Bank accounts are an easy way of beginning your credit journey. If you jump around from bank to bank, you could be seen as unsyable. If, on the other hand, you have one bank where you've had accounts for many years, that makes you appear stable, and therefore, more attractive to lenders.
It's very important to pay all your bills on time -- not just your credit cards. Even your utility bills can play a small part in your credit history. Setting up automatic payments can be a big help to ensure that you don't miss any payments; just be sure that you always have the money available so you don't incur fees at your bank while trying to avoid fees with the credit card. Any problems you have with your credit can take up to seven years to disappear, so be very careful. It's also not a good idea to max out any of your credit cards -- your debt ratio is taken into account when your credit score i being figured. Also, you don't have to carry a balance (and pay all that interest) just to have a good credit score. Paying your card balance in full each month is an excellent way to build up your credit.
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