LAKE CHARLES, La. (KPLC) - After graduating college, you’re often hit with a few harsh realities, and a lot of them are financial.
You don’t want to think about it because you just graduated, but you need to start now thinking about building up your credit score now.
Having a good credit score is important for so many reasons, and it can impact you in many ways.
When you are renting an apartment, buying a car or house, or getting a job, they will surely require a credit check.
Something else to consider: when it comes time to switch off of your parents’ insurance, your credit score is actually a bigger factor than your driving record when companies determine how much you pay.
If you think you don’t have a credit score, you probably do, especially if you took out student loans.
So you get it, it’s important, but how do you build it up?
For starters, if you haven’t already, get your first credit card. Some people will tell you credit cards are bad, but that’s not true; poor use of credit cards is what’s bad, so you have to be careful.
Look for cards that charge competitive interest rates, have no annual fees, and offer cash back or other incentives.
Absolutely stay away from cards with high interest rates. You’re just setting yourself up for failure.
Don’t spend up to the limit on your card... a good rule of thumb is to stay around the 30 percent range of your limit.
Next, and obviously, pay off debt and bills on time. This is crucial to keeping a good credit score. Pay off your credit card, student loans, and bills immediately.
Another tip, check your credit report regularly. Know your score so there are no surprises. Nowadays there several ways to know your credit score, or a least an estimate, without hurting your score.
For more tips on building up your credit score and how to keep it there, click HERE.