C is for conquering your fears when it comes to credit cards. There’s no way to avoid getting a credit card as it’s an important way to establish a credit profile, score, and payment history—all of which are essential for the future when applying for car and home loans.
R is for riding on another’s card. When it comes to credit cards, there’s a catch-22. Young adults need a card to build a good credit score; however, without a credit score, it’s difficult to get approved for a card. That’s why it helps to be added as an authorized user on a parent’s card first. It gives you a chance to prove you’re a responsible credit card holder.
E is for educating yourself about student cards. If you can’t be added on your parent’s regular credit card, you may look into applying for a student credit card. Although the limits are low, the opportunity to establish credit is high, as it will still afford you the chance to learn how to manage your budget and pay bills on time.
D is for doing what it takes to establish good credit. Typically this means paying the minimum fee every month. Preferably you can pay off the entire balance to avoid the cost of accumulated interest. Taking care to only charge what you know you can pay off right away is one way to achieve this.
I is for inspecting your credit report once a year to make sure it accurately reflects your history. This is your opportunity to right any wrongs associated with the report and make sure you’re always in tip-top shape.
T is for talking to an expert about your credit. Industry leaders such as Ovation can provide knowledgeable representatives who can personally help you build credit and create a credit repair plan that is tailored solely for you. To learn more, call us today for a free consultation.