Building Credit Score from the Ground Up!
Growing up, I always heard talk about credit cards and credit scores from adults. Though they were common phrases and topics of conversation, it took me a long time to understand the importance of credit. Now, I can confidently explain why credit is necessary and practice building it myself!
It can be challenging to get a jump on building credit whether you just turned eighteen or are getting a later start, but don’t worry; we are here to help! Here are a few different ways that any person new to the world of credit can apply to their financial practices:
Look into becoming an authorized user on the credit card of a well-trusted family member!
This is an excellent way for a person with no credit to learn the dos and don’ts of building their score with the help of a financially responsible peer. Authorized users can use the primary credit holder’s account with no risk involved, as long as the authorized user is reliable and has a strategy to pay the family member back for the money they spend! Some companies even allow minors to be authorized users.
Apply for a credit card of your own, and use it!
Though it may be out of habit to use a credit card and make payments, it is entirely necessary to build a good credit score! One must work hard and be financially efficient and responsible to develop and maintain a good credit score. So, with that being said, once you get your own credit card, use it! Responsibly, of course.
Budget, budget, budget!
To build and maintain a credit score to be proud of, budgeting is vital. By budgeting monthly or weekly finances, one can limit spending on things that may be unnecessary, which will, in return, help them save money. Saving money is critical in building good credit because it is crucial to always have accessible funds to pay off credit card statements.
For help building your credit score no matter where you are in your financial journey, contact Kelly Community for professional, thoughtful advice to ensure your future success.