Why Should I Think About Credit Right Now?

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Too often, people don’t worry about credit until they want something big. But when the day comes that you need a loan — for that sweet ride or that dream house, let’s say — your credit report can make or break the deal.

Besides making it easier to borrow, a good credit score can help you rent an apartment, qualify for a better auto insurance rate, or even a get that job you wanted. So, it’s important.

The smart move is to make your credit history look good to lenders long before you need a loan or credit check of any kind. It’s not that hard to do. Here are some options for getting started:

  • Apply for a low or no fee credit card.
  • Get a card at a retail store.
  • Try for a secured credit card or loan.
  • Ask a family member if you can be an authorized user on their credit card account.

Your goal is to take on a debt you know you can pay back to build positive credit history. Keep in mind that if you pay late — or not at all — you’ll be doing the exact opposite!

Whatever method you choose: Don’t open too many accounts at once. Don’t max out your credit. Be selective, take it slow and manage credit responsibly.

Tip: If you’ve messed up your credit, don’t despair. While there is no quick fix, credit repair is possible — it takes good credit behavior and time.