If you’ve applied for an apartment, car, or loan you know how essential having good credit is. In fact, last week (was it really only last week?) when I applied for my awesome new eastside apartment, I was approved instantly solely based on the fact I have awesome credit. Same thing happened last year when I decided to lease a car – I think the qualifier’s exact words were, “An 815 credit score and you’re twenty five? That’s unheard of!” I felt pretty awesome, and now have a great car and great apartment because of it. Now, before you go thinking I’m the ultimate saver and financial guru, let me assure you that is far from the case. In fact, my mother will be the first to admit my biggest problems is indulging on shopping sprees. But, here are some tips to ensure good credit:
1. ALWAYS pay on time. Even if it’s the minimum amount. Set an alert to remember. If you’re late more than 30 days on a payment, your score will take a plunge. Plunge.
2. Try to pay more than the minimum. It will help you pay off your debt faster and help you incur less finance fees.
3. For vendor credit cards (like specific stores i.e. Victoria’s Secret, Best Buy, etc) try to pay off the full amount. In my experience, these cards tend to have a higher APR, and you don’t want to get stuck paying for a $150 bill for the rest of the year. A trick I’ve learned, when you charge on these accounts treat it like a debit card transaction. If you don’t have enough funds, don’t spend.
4. Try to have no more than 5 credit cards. It’ll keep you debt down, but it also proves to creditors that you’re capable of paying things off. I have a main card that I keep some debt on, and 3 vendor credit cards.
5. Do not start applying for a bunch of credit cards at once. It sets off a red flag that you’re stocking up for a reason.
6. Do not cancel credit cards – especially ones that you’ve had forever and especially ones that don’t incur a fee. Just don’t use them.
7. Keep balances low. If you’re more than half your credit limit, you’ve gone too high.
8. Check your credit score about once a year to make sure it’s airtight.
Follow these tips and you could be on your way to a great score.
All good points! I honestly did not know about credit cards and scores until I was 20 or 21. I was too scared to get one. I wish I had earlier so that I'd have a longer credit history!
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