Establishing Credit is Only the First Step
Establishing a good credit history takes time. There are no shortcuts or tricks that can take you from no credit at all to a high score in a matter of months. Remember – your credit score is based on a number of factors such as payment history, length of time you’ve had credit, how much you owe and much more. Here are a few “don’ts” to keep in mind:
1) Don’t overdraw your bank account. You will be charged fees, and you can damage your credit record.
2) Don’t miss payments on bills or loans. Late payments count against you.
3) Don’t let other people use your bank account, credit card, debit card or ATM card. You are responsible for what they do with it.
4) Don’t leave utilities (gas, water, telephone, electric, cable) in your name if you move. Always close out or transfer all accounts before you move. If accounts are in your name, they’re still your responsibility.
5) Don’t forget to account for recurring bills on your credit card, such as subscriptions or club