Building Credit Young: Why It’s Important & How to Do It
When you are young, you have limited experience with credit and therefore you may not realize just how important having good credit is. Having good credit makes life much easier in so many ways and keeps you financially stable and secure throughout your life. Once you turn 18, you can officially begin building credit and working your way up to an excellent score. Here are some tips on how you can start building your credit at a young age:
- Open a secured credit card. When you are ready for your very first credit card, it is easier to get approved for a student or secured credit card, which has a certain credit limit on it. While you will still be able to charge on your card, having this credit limit will help to keep you on track and out of debt.
- Become an authorized user on a family member’s credit card. If you have a family member that you trust and that is willing to allow you to become an authorized user on your account, this is a great way to build credit at a young age. Once you are an authorized user, their credit card activity will help to build your credit.
- Make payments on student loans. If you have student loans, make payments on them as often as you can. Ensuring that you are paying your student loans on time, and often, will help to build credit as you are consistently working to pay off your debt.
