First Steps Toward Good Credit

By Tiffany Linder

Credit is something that will follow you throughout your life and having good credit can help you. The most important stage of credit is the very beginning. It’s all about how a person starts out. This is so important because the beginning sets the tone for the rest of the credit life. If a person starts out with no knowledge of credit and finances, they could very easily end up in debt, which is hard to get out of.

Starting off with knowledge about earning, spending, and borrowing and the system based upon it can really help a young person begin down a brighter financial path. A good way to seek this guidance is to go to the credit union, there’s always someone to talk to there and answer your questions. Another way is to discuss credit issues with someone who has already accumulated a credit history, such as a parent or family member. They will be able to tell you the good and bad choices they may have made and how you can learn from them.

Once information has been gathered, the next best thing is to sit down and create a credit plan that will best benefit the life you anticipate. This means if you’re a college student and have acquired student loans, you must figure out approximately how long it will take you to pay them back, and how this loan will affect your life as long as you are paying it back. For example, I am a college freshman and I estimate that it will take me 10 years after I graduate to pay my student loans back. During this time I understand that I should not make any large financial changes so that I can reach my financial goals.

Being smart about credit is the best advice for a young person just starting out. Having a good credit standing can help you out if you ever find yourself in need of a loan. Remember, nobody’s perfect, but don’t let this fact impact your ability to have good credit.