Free advice for any person looking to establish credit

• Open a Bank Account:

  This is often the first step in establishing financial independence and it's a great way to start managing your own money.



• Apply for a Secured Credit Card:

  A secured credit card is backed by a cash deposit you make upfront. The deposit amount is usually the same as your credit limit. It's easier to get approved for this type of card when you're just starting to build credit.



• Become an Authorized User:

  Personally, I don't like this because it forces you to rely on someone else but it can work. Basically, if a parent or other family member is willing, they can add you as an authorized user on their credit card account. You'll benefit from their credit history, but remember, you'll also be negatively affected if they miss payments.



• Pay Your Bills On Time:

  Whether it's a utility bill or a credit card bill, timely payments are one of the biggest factors that contribute to your credit score.



• Keep Your Credit Utilization Low:

  This means you should try to use only a small portion of the credit available to you. A good rule of thumb is to keep your credit utilization under 30%.



• Don't Apply for Too Much Credit:

  Each time you apply for credit, an inquiry is made on your credit report. Too many inquiries in a short time can lower your credit score.



• Check Your Credit Reports Regularly:

  You're entitled to a free credit report from each of the three major credit bureaus every year through AnnualCreditReport.com. Regularly checking your credit report can help you understand what affects your credit and how to improve it. It also allows you to spot and dispute any errors.

Remember

Building credit is a marathon, not a sprint. You are also not racing against anyone but yourself. Good credit takes time and consistency. Make sure to make smart financial decisions and keep your future goals in mind.