Now that you know how to build credit and why it’s so important
to your future finances, you may feel you’re ready to take the
first step. You can start building credit with the help of a
parent who will co-sign a loan or add you as an authorized user
on their account. But, if you want to establish credit on your
own, consider if you're willing to meet these basic
requirements.
-
• You want a car, need to rent an apartment or have an
interest in getting a credit card.
-
• You can commit to using your money wisely by saving,
budgeting, and paying your bills on time.
-
• You know how credit works and understand the pitfalls to
mismanaging debt.
-
• You have a job and you’re earning sufficient income to pay
your bills.
-
• You understand that poor credit follows you around like a
bad cold and is difficult to reverse, so you’re willing to do
without things you may not need in order to pay your bills on
time.