Build Your Credit Right After Graduating

Graduating from college is a big step in your life, but the rest of your future is ahead of you. What should you do now that your an "adult"? Build your credit and get ready for the next big life event; buying a house! Here's what you need to know about building your credit score.

It really does matter

If you want to qualify for a loan, or even rent an apartment, your credit history will be looked at without question. 

Know where you stand

The first thing you want to do is know exactly where you stand. Get a copy of your credit report by visiting your local bank, or one of those credit viewing services. Look over it carefully to make sure the information is correct, because mistakes are very possible. If there is a problem, report it and get it fixed immediately.

Build your credit history

Your credit history is an important factor in determining your credit score. That three digit number has a lot of power in determining you the rates you will pay. 

When you're young it's important to build your credit history because that's when you have plenty of time to do so. Getting a credit card is one of the most common ways to build your credit history, but it comes with a catch. You must be responsible!  Failing to pay your credit card balances will take your score the opposite way you want to go. 

If you choose not to get a credit card, there's no way for financial institutions to track you. It's almost as if you aren't even on the radar, show you appear as a credit risk.

Know your credit card options

With all the credit card offers flooding your mailbox, you may be better off getting one with a credit union. Do your homework and know what each company offers and what will suit you best.

Another route if you have no credit history or poor credit, is to get a secured card. These act just like a regular credit card except you pay a security deposit to obtain one. 

Be responsible

The best way to be responsible with a credit card is to live within your means. Don't buy things you can't afford and what ever you do don't be late or skip payments. Your payment history is 35% of your credit score, and that can have a major impact.

Go after student loans

If you have student loans, you have debt. These unfortunately are factored into your credit score. The lender will notice your student loans, but if you're handling them properly it won't be a problem. The best way to get rid of student loans is to pay them every time, on time.

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