Finance & Loans

Beginning Your Financial History

A solid financial history is essential, but it also takes time to build it. The long-term trajectory of your life, in terms of money matters, will be a decisive factor when it comes time to applying for credit. That’s why it makes great money-sense to keep a close eye on your credit score.

Because minors are not held responsible to contracts, most people gain admittance into the institution of credit upon turning eighteen. Usually it’s while in college that people apply for a first credit card. It’s been estimated that about eighty percent of college students carry at least one credit card, in their name, in their backpacks.

If you’re about to begin building your credit history, it might be to your benefit to have started out honing your money management skills with a debit card. Although credit card companies are especially welcoming to college students, there might be reasons for why they might be reluctant to extend credit to you. This not a reason to despair, and there are alternatives for establishing your creditworthiness. For example, you can take out a department store charge card or secured credit card. Just make sure the lender reports your payments to the credit bureaus. Then, manage your account(s) with diligence and check your credit report and score periodically. You can even look online to check for a free credit score offer. By keeping good tabs on these accounts, mainstream credit will not be far away.