Your credit history begins the first time you borrow money. But often you’ll need a credit history first to borrow money. So what do you do? Well, one good way to start developing your credit history is to take out a student loan with qualified co-signers. That way you'll get your student loan, and as you pay it off, you'll begin to establish your own credit. As you demonstrate your responsibility and good payment habits, you’ll find it easier and easier to get credit. Why is it so important to have good credit? Unless you have enough cash on hand, you're going to need credit for a car or a house!
Some tips for maintaining good credit:
- Don't spend more than you make; it seems basic, but you might be surprised how many people let themselves get in over their heads; creating and sticking to a budget, money in/money out, will go a long way toward helping you get started on a sound financial footing
- Always pay your bills on time; this is the most important thing you can do to build and keep a high credit score; and here's a plus: with Loan to Learn®, if you make on-time payments for 48 consecutive months, (conditions apply) you may be entitled to an interest rate reduction
- Try to pay credit card balances in full each month; if for some reason you can’t, keep balances low and manageable
- Limit the number of credit cards you have and use; remember, the money has to be paid back
Learn more about establishing and maintaining good credit.