Start small- One of the hardest parts of building credit is to just get started. Credit is a catch 22, you need credit to get a loan or credit card but you can’t build credit without using credit or getting a loan. You can get a secured credit card in which you prepay the card and then charge against it. Another option is to get a credit card from a retailer. These cards are often easier to get and will still help you build credit.

Pay if off every month- One of the biggest traps of credit cards is charging more than you can afford to pay off every month. Remember you are building credit you are not buying everything you ever wanted. Do not keep a credit card for emergencies instead start saving for an emergency savings fund. The last thing you want when starting out is major debt because you failed to create savings in an actual savings account. Carrying a balance on your credit card is expensive so make sure that you are responsible in your use.

Don’t expect overnight success- Building credit takes time and you will need to be faithful in your efforts. Make sure that you pay your bills on time every month; you will not build good credit if your finances are not stable. Another thing that is extremely important is to make sure that you understand all of the fees associated with your credit card use.

Although a credit number is just a three digit score it is used to determine many things in your life. Your credit score will be used to determine your insurance rates, your ability to get a loan, your interest rates and maybe even your job. Credit is an important number to all areas of your life so you need to make sure that you understand how to build and keep good credit.