How to build your credit score at 18

Credit score is one of those important financial index that is put into consideration when you are trying to make a purchase of financial assets or resources. Many have failed to build their credit score thereby unable to get some financial assets as a result of low credit score and financial savings. Building good credit score at a young age such as 18 is one of the goals of an adult however it is a process that require a great deal of efforts and financial calculations. It is also important to note that your credit score is dynamic and not static thereby changing as time requires it.

All your financial expenditures and appropriations affect your credit score including the decisions you make concerning your finances. As stated earlier, your credit score will help to determine your ability to carry out some financial obligations such as utilities and services, subscriptions, car purchases, credit cards, loan application, apartment rental and employment opportunities. While bad financial choices and decision may portray you as an high risk individual to business persons and corporate lenders, having good financial decisions will help portray you as low risk providing you with better financial opportunities that are lower rates and high credit limit inclusive.

The ability to avoid making financial mistakes will help in terms o financial benefits and presentation of a positive credit report. To build your credit score as early as 18, you will need to take note of the following

1. Start as soon possible and minimally

Building a good credit score at 18 will require you to have a credit history as soon as possible. One of the major factors that will determine your credit score in the long run as an individual or citizen is the length or period of credit history. Also, you are to make sure you have less applications on credit to portray as n individual living within his or her means to the businessmen and lenders you are filing an application with.

2. Right financial decisions

Never make wrong financial decisions as a result of availability of financial resources at your disposal. Its very easy to spend your resources and allow it get into your head. However, making responsible financial decisions will be the best option you can make with the credit cards and loans. The financial resources should be allocated to the necessary projects and needs.

3. Quick payment of bills

Always make sure you are paying your bills on time and keep them very low and cleared always in order to beautify your credit report. Having unpaid bills and financial subscriptions will only make your credit report looks bad and impact your credit score negatively.

Some of the other ways to build your credit score include:

4. Paying your credit card balances strategically

This is highly influential in build your credit score. The credit utilization index is the second biggest factor and determinants of your credit score and this can be influenced for a better credit score by paying them on time and avoiding late payments.

5. Higher credit limits

You can ask for higher credit limits because when your credit limit is on increase while maintain the same balance, there is a reduction in overall credit utilization which will directly increase your credit score.

6. Raise complain about credit report errors

Always make sure you look carefully at your credit report and raise awareness wherever an error or mistake is cited as a mistake or two on your credit reports is interlinked with the reduction of your credit score.

7. Secured credit cards

Make use of a secured credit card to build your credit score. A secured credit card will be backed by cashed deposit giving an opportunity to pay upfront and have the same amount of credit limit with your deposit. It can be used like a normal credit card and making on-time payment will help in building one’s score.

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