As young adults become responsible for paying their own bills they also start building a credit history. Usually, a better credit history and credit score result in better chances of qualifying for loans, credit cards, or cell phones. A strong credit score can also help when applying for jobs, buying auto insurance policies or renting an apartment.
Tips for building and maintaining good credit history:
- Pay your loans, bills and other debts on time. Missing payments or paying late may negatively impact your credit history. It is important to continue paying your debts even if you’ve missed a payment in the past.
- Charge only what you can afford to pay off immediately or very soon on your credit card. If paying your credit card bill in full isn’t possible, pay more than the minimum balance due so that interest payments will be minimized. Note that your credit score will likely fall if you owe a significant amount on your credit card compared to the card’s credit limit. Applying for multiple cards also can lower your credit score.
- Review your credit report for errors at least once a year. Correcting inaccurate information in your credit history may improve your credit report and score. Monitoring your credit regularly can also help you detect potential signs of identity theft. To obtain a free copy of your credit report from each of the three major credit bureaus, visit www.annualcreditreport.com.
If you believe you have been victimized by a scam or wish to report suspicious activity, please file a report here.