The rest of your life begins the moment you are born. Today’s fast-paced world leaves little room for those who lack motivation, and the reality that your credit score is everything is very true. A common misconception is that you are not supposed to have good credit until your late twenties or later, and even then it is only supposed to be sufficient to get you a car or a decent home.
Truth be told that your credit score is incredibly important, and improving your credit is crucial at a very young age. Even if your parents help you with some payments, taking the necessary steps to build your credit early is a crucial part of living a prosperous life.
Take Out a Credit Card
Credit card companies and Chicago retailers must have a detector that alerts them when somebody turns eighteen, and a credit card application appears in the mail almost simultaneously. Believe it or not, having a credit card is not a mistake, and you should obtain one.
Making sure that you pay it down each month is essential because failure to do so will ruin your credit early on. As long as you prepare throughout the month for when the bill comes in, your credit will build easily.
Store Cards Work, Too!
While most people get irritated at the checkout line when the cashier asks them if they would like to apply for a store card, somebody trying to build up their credit should take a chance. Usually offering affordable interest rates, store cards allow you to build credit and score some deals at your favorite stores as well.
The Dreaded Car Loan
Taking a risk is often the only means to generate positive results in life. Every adult needs a car, and applying for a car loan is part of life. While your vehicle does not need to be recent nor top of the line, applying for the loan will build your credit enough so that, someday, you just might be able to afford the best of the best. Also, if the car is paid off, in the future you could use it to take out a Chicago car title loan to get some quick cash if needed. Car loans are the fastest ways to build credit if you pay it off in a timely fashion. However, nonpayments of a car loan are the quickest way to decline your credit.
Pay Your Rent
A necessary part of life regardless of the credit it might build is paying rent. People often forget that major bureaus have the option to take note of those who pay their rent on time, so even if you have an apartment with a few buddies, make sure that your name is on the lease. Using your money management skills to make sure that you are never late on your rent is a great means to improve your score. Hey, you were going to pay it anyways, right?
How is Your General Payment History?
A good way for your score to decline is letting your bills buildup on the counter. Unfortunately, landlords and utility companies do not comply with an unstable economy, and the bills continue to flood your mailbox each month. Failure to pay them on time will not only result in shut off notices, but also a decline in your credit. Having a checkings and savings account is crucial in keeping track of your expenses, and to put money away that you will not be tempted to touch for anything but bills.
Life is about building good habits and applying those rituals to your daily routine. Paying bills in a timely fashion may be difficult at first, but it will eventually become second nature. Back to homepage: http://www.familyeconomicinitiative.org