How to establish credit

Use these six tips to establish credit.

  1. Open a savings account or checking account and manage it well.
  2. Never spend more than you have in the account. This reflects on your ability to repay loans.
  3. Get one or two gasoline or department store credit cards and pay your bill on time, every month.
  4. Take out a small loan for an appliance or a computer, and repay it monthly — in full and on time.
  5. Get a secured credit card by opening a savings account with a balance equal to the card’s limit.
  6. Put your apartment and utilities in your own name and always pay your bills on time.

Good credit management over time is key to building your credit and determining whether you can obtain credit for large future purchases, such as a car, a home, or college education.

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