- Check your credit score annually to make sure there are no errors in your financial history. Free credit reports can be obtained at AnnualCreditReport.com.
- The Fair Credit Billing Act requires the three main credit rating agencies—Experian, TransUnion and Equifax—to correct errors and disputes pertaining to your financial history.
- To bolster your credit rating, make payments on time, manage your cash flow wisely, correct errors in your credit history and don’t utilize more than 30 percent of your available credit.
- Pay your entire balance off (on time) every month.
- Always stay under your 30 percent utilization rate to maintain good credit.
- Research your awards programs carefully.
- Four basic components of any type of loan are time, interest rate, loan amount and payment.
- Young adults tend to have four types of loans: student, auto, credit card and mortgage.
- A good credit score will give you much better terms on any type of loan—and save you thousands of dollars over your lifetime.
- Establishing a good credit history early in life goes a long way to helping you get favorable loan terms.
- To build your credit, pay your bills on time, stay under the 30 percent utilization rate and establish two credit cards with staggered due dates.
- Get a free credit report at AnnualCreditReport.com. Make sure there are no errors in your credit history.
- Always keep your FICO score above 740.