Caring About Good Credit

By: Tom Tessin

If you're new to the credit card game or you've been in it for years, there are a few things you need to know about your credit rating. Your credit rating is your future if you're looking to get a new car, a mortgage, apartment, etc. Basically, if you want to live outside of your parent's house, you're going to have to establish credit, period. Today, I'm going to explain to you on why good credit is important and how you can maintain it.

You need it to apply for essential needs

I'm just going to list a few things that you'll need good credit for and from there, you decide if you want to keep your credit in good standing. Things like car financing, apartments, home mortgages, personal loans, utility bills, and places of employment. Yes, you heard me, some places look at your credit report and that's how they decide the hiring process sometimes! It may sound unfair but many corporations and businesses do this. The reason why they do this is because they want to judge you on your spending habits.

Getting good credit isn't that hard to do, it just requires a few steps and as long as you follow these steps, your credit score will only get better. It's up to you to make sure that you're disciplined and you're willing to use any open line of credit as responsibly as possible. Below are ways you can maintain and build up your credit -

Open up a checking or savings account - Most credit card companies want to see that you have a place to store your money. If you don't have any accounts opened, they are going to wonder if you're living paycheck to paycheck. Open up a savings account and just throw a few bucks in. Most banks only require a few dollars to open one up. Look around before you apply because some banks will offer bonuses to encourage you to sign up.

Open up a credit card account - If you're going to college, the best thing to do is to open up a student credit card. A student credit card is designed for someone looking to establish credit for the first time. Almost all students will no credit generally get approved. If you're not going to college, I would advise you look into applying for a retail store based credit card. These cards are generally the easiest to be approved for.

Once you follow the steps above, you shouldn't have a hard time finding an open line of credit. Just make sure that when you do get approved that you show the card companies that you can pay your bills on time and you don't' overspend. Credit card companies hate people that never pay their bills and continue to use their card like it's a piece of fake money. Credit cards can be very rewarding if you use them right, it just takes a little discipline and self spending control. If you can do this, you'll be building credit in no time.

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