5 credit-building tips that’ll make your life easier

How important is having a good credit score? More important than you might think. Without good credit, you won’t able to apply for that nice apartment with your best friend. You also won’t be able to get a new car because you’ll be classified as a risk due to your poor credit. However, earning good credit isn’t difficult. It’s actually quite easy. Just follow these five simple credit-building tips.

1. If you have bills to pay, it’s imperative that you pay them all on time, whether it’s rent, utilities or credit cards. Late payments can have a negative impact on your credit score, even if you’re just a few days late. An easy solution is to set up payment reminders or auto-payments through Bill Pay to ensure you never miss a payment.
2. Avoid transferring any debt you may have to other accounts. Moving debt around may result in fewer open accounts, but it could also lower your credit, which is the last thing you need when trying to get an apartment. By paying off debt, you not only build your credit but also improve your credit score as well.
3. Now is the time to open a credit card and a checking account, and use them both regularly. People who manage credit cards responsibly tend to have lower risk than those with no credit cards. It also beats carrying around cash everywhere you go.
4. Keep an eye on your credit score by checking it frequently for credit progress and any signs of fraud. To make sure you can identify fraud, get to know all of the information included in your report. That way you’ll be able to spot errors and negative information.
   You can get a free credit report at www.annualcreditreport.com once a year from each of the three nationwide credit reporting bureaus – Equifax, Experian and TransUnion. Whether you do them all at once or throughout the year is up to you!
5. If you’re using your credit card for everyday purchases, then make sure you pay more than the minimum payment whenever you can. This will not only keep your interest down but it’ll also boost your credit score.

Also remember that paying off balances in full at the end of the month establishes good credit and shows lenders that you’re fiscally responsible – look at you adulting!  Plus, it ensures you’re using a credit card exactly how it’s intended – as a short term loan.