1. Open a bank account and try to build up a balance that you can fall back on if you need extra money or if an emergency arises.
2. Make sure that all bills that are in your name are paid on time.
3. Apply for a credit card. Without a credit card it is really hard to establish any credit history. Make sure you use it responsibly and to make the payments.
4. If you are unable to get a credit card from a bank because you don’t have a credit history, consider applying for one from a department store or a gas company. These usually carry higher interest rates, but will help you establish credit.
5. Be sure to pay at least the minimum amount on each bill each month.
6. Review your credit report at least once a year, but twice a year is preferable, to ensure that everything is as it should be.
7. If you are finding that your debt is getting out of control, seek help from a credit counselor, before you get in too deeply.
1. Let your bank account get overdrawn. You will be charged overdraft fees and it will reflect badly on your credit if you apply to the bank for a loan.
2. Miss any payments. Even late payments count against you.
3. Let anyone else use your credit card or your ATM card.
4. Let utility bills stay in your name if you move.