When you are just starting off, you may not have any credit products in your name. Ask utility companies to report your bill payments would reflect on your credit history as well. Though one drawback of this method is that their debts, pending dues, etc. It goes without saying that make sure to consider a person that has a positive credit score. In this way, you will also get the benefit of their credit history. If you are finding it hard to get a credit card, you can also become an authorized user on one of your friend’s or family member’s credit cards. Make sure that the person you are considering to become a co-signer has a good credit history which can help you get a better deal. You can also get a co-signer for your credit card. Suppose you are getting a secured card having a $1000 limit, you will have to deposit $1000 as collateral. With a secured card, you have to deposit a certain amount as collateral. As you are just starting off, your options can be limited because you have no credit history and it can be tough for the lender to estimate whether you are a risky consumer or a creditworthy consumer. This is one of the simplest and easiest ways to start your credit journey. What to consider when beginning your credit journey: Opt for a credit card

Getting a good credit score helps in getting a lower interest rate when you opt for loans or credit cards.Ī credit score is built up by having a good credit history, credit utilization ratio, the length of the credit history, and the type of credit mix that you have. 300 is considered the lowest and 850 is considered the highest credit score available.

In the US, credit scores range from 300 to 850. A credit score is a number that lets your lender know how creditworthy you are. Importance of a good credit scoreĪs you are just getting started on your financial journey, it is vital that you start building up habits that can help you get a good credit score. Let us see how you can achieve this goal in this article. You cannot get a good credit score built up overnight and have to work through it by making responsible use of credit. A good credit score can help you in various things such as opting for an education loan, getting a home loan, buying a car using credit, or just as simple as opting for a credit card. It is crucial to understand your credit when you are just beginning to start your financial journey.

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