Establishing a Great Score may seem like a daunting task to a young person, but a good strategy can help take some of the sting out of the process.

Start by opening a checking and savings account in your name. This alone will not establish it, but it will get you on the map and provide much needed credibility with financial and lending institutions. Keep accurate records of your checking account balance and make sure to never overdraw on your account. Bouncing a check will send up red flags with potential creditors and diminish the likely hood of establishing it.

With a limited history you probably won’t qualify for a major unsecured card yet. Therefore you may want to consider opening a secured card with your bank. Just about all secured cards require a deposit equal to the amount of your initial limit.

Another step you can take if you want your young person or child to start to establish it, is to think about adding them as an authorized user to one or more of your cards. Only if you have made timely payments and kept your balances and utilization low. I recommend keeping your utilization between 1-7 percent. Now you must know, this could also put your authorized user at risk of hurting there scores if you don’t continue to make the proper and timely payments to those cards.

Points to Remember When Applying for and Using a revolving card:

  • Credit cards are not a source of free money – misuse can cause damage.
  • Make sure you understand the “Terms and Conditions” of the card including due dates, interest rates, fees and grace periods before applying.
  • Keep monthly charges manageable – don’t go overboard on your spending.
  • Don’t over do it by getting numerous unnecessary cards.
  • Pay the amount as close to $0 without paying to $0 every month.
  • And always pay your bills on time.

By following the simple guidelines above, you will eventually prove your credibility. And in doing so, will qualify you for an extended lines.

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