Graduating in December? Time to start building credit.

At your college graduation, you’ll hear inspirational speeches. You’ll talk about hopes and dreams and all the hard work you’ve put in to get this far. What you probably won’t be hearing about is getting your credit in check as you enter the “real world”. Starting your professional journey by establishing good credit is a great way to start things with the right foot forward. Here is what you need to know about building good credit and how to get started.

Credit matters

Qualifying for auto and home loans, rental applications and even some jobs have become dependent on having good credit. Starting early to establish a credit history will help you later on.

Knowing where you stand is key

You may have no credit at all, or you’re up to your neck in credit cards and student loans. Maybe you’ve already started establishing good credit. Now is a great time to get your credit report an make sure you are keeping track of any debts you have and disputing any discrepancies before it it too late.

Building a credit history will help

One of the major contributors to your credit score is your credit history. Your credit score will determine what rates you pay when credit is involved, on everything from insurance to mortgages and credit cards. Many are surprised that credit rating affects many other aspects of your business life.

Do your research

There are so many credit cards on the market. If you are looking to use a credit card to build your credit history, make sure you start by researching each card instead of signing up for the first one that send an offer in the mail. Less is better with credit cards, not more. Be selective and choose wisely.

Make sure you are responsible

Having credit means being responsible. You should try to never use more that 30% of your available credit and pay off your balances monthly if possible.

Work on your student loans

It can be easy to put student loans in a different category, but they are still a debt and can affect your credit score. While the numbers may seem intimidating, especially when they’re in the tens of thousands, you don’t need to worry as long as you are making your payments fully and on time.

Embark on buying a home

Why continue to rent? With today’s low interest rates, you most likely can buy a place of your own and not pay rent. Then, you are able to rent rooms in your home to others, making your investment pay off. With good credit, and an established history, you can start the next phase of your life! Contact an agent today to get started!


Karen W. Hall