An Easy Way to Build Credit

It is important for young adults to establish a good credit history so they can show lenders their good financial standing when it comes to making larger purchases, such as a vehicle or home. A good credit history not only helps when it comes to financing options, but can also make a difference in auto insurance rates, renting an apartment and getting a good job. Although building good credit is not necessarily difficult, it does take time.

Instructions

1

Get a student credit card. Some credit card companies offer college students credit cards despite their lack of a credit history. If you get a student credit card, use it to make a couple of small purchases occasionally, and pay the balance in full when the bill arrives.

2

Open a bank account. Some banks and credit unions have banking options for students, which allow young adults to open an account with less money than is usually required of a new customer. After having money in the bank for a period of time, you may receive credit card offers from the bank itself. If you qualify for a credit card through your bank, use it sparingly and pay the balance in full when the bill arrives.

3

Piggyback. If your parents have good credit, see if one of them will add you to a credit card account as a joint account holder. Your parent's good credit will reflect well upon you. Another way to piggyback on someone else's good credit is to have a person with good credit co-sign a loan for you; the loan will show up on your credit report.

4

Apply for store credit cards. It may be easier to get a store credit card than one through a major finance company. A store credit card will not impact your credit score as much as one through a major finance company, but it is a simple way to start building credit and opening doors to future financing options you may not qualify for otherwise.