Everyone needs to start building credit at some point. The trick is to find the right time and attack the problem with the most effective strategy – and that can be tough. You don’t want to wait too long to start a credit history, but you also shouldn’t take the leap before you’re ready to make regular payments. Here are a few tips that can get your credit building started on the right foot. <\/p>\n
1. Stick to just one credit card<\/strong> 2. Don’t reach your credit limit <\/strong>
\nYou should refrain from opening up too many credit accounts in the beginning. Start with one card and make a concentrated effort to have a sparkling record. Once you hit a year of success, you can think about adding a second card – preferably one with a better interest rate, now that your score has likely improved. <\/p>\n
\nIt may be tempting to put a ton of purchases on a new credit card. You might even come close to hitting the maximum limit. However, this will only hurt your score. Try to start by making smaller, more manageable purchases with the card and paying them off in full as soon as possible. As your credit limit goes up, you’ll be in a better position to close on bigger buys. <\/p>\n