Building and maintaining good credit from the start is a very important part of a healthy financial life. It allows you to qualify for new credit accounts — car loans, credit cards, and mortgages — at the lowest possible interest rates. If you don’t pay your bills on time, miss payments, or go over your spending limit, you’re developing a bad credit history that could lead to higher interest rates and additional fees like late or overlimit fees, and cost you more money later. Some potential employers may review your credit history and you will be denied employment opportunities due to negative credit history. In order to avoidthese consequences, start with the basics and work your way up. Really think about the future when making decisions today.
Check out these six steps to help develop good financial habits and begin to build good credit.