A good credit score can help you save a lot of money in interest and fees. Here are some top tips if you are a Gen Zer.
1. Understanding how credit scores and reports work is the first step to learning how to build and maintain your credit.
2. Keeping track of your progress by checking your credit score and credit reports, and reporting errors is a must.
3. Ask someone who has good credit history to add you as an authorized user on their credit card to improve your own.
4. If you want to be responsible for your own credit card, open a secured credit card. This will give you limited credit access.
5. It’s important to pay your bills on time. Always and every time. Consistent payments show you can be trusted.
6. Keep your credit card balances low to improve your score. Nothing shows you are good with finances like a low ratio.
7. If you get a student loan, personal loan, or car loan and repay it on time, this can also help you build credit.
8. Do not apply for new credit or loans too often in order to avoid hard inquries that will hurt your score.