One of the greatest things about our country is the ability to become financially independent, but learning how to do this can be challenging. Building good credit is a must; it will help you qualify for loans, rental, car insurance, cell phone plans, and credit cards. The first step is to be responsible with your spending habits.

In this article we wanted to give you some tips on building good credit so you can get off to a excellent start on this credit score building journey.

1. Get a secured credit card or student credit card. When you are new to the credit application process it will be hard to get a credit card. Typically banks will not extend credit to you without some good credit history. This can be very aggravating. So secured credit cards and student credit cards are great ways to start the building credit process.

2. Become an authorized user on your parent’s credit cards. Until recently FICO considered this a controversial practice and they have decided to continue allowing also know as piggy backing somebody else’s credit to help your credit. This is a great way for parents to monitor there kids spending habits while at college. Once they are doing well with this process then you might consider applying for a student credit cards or maybe a retail credit card with a low spending limit.

3. Use credit cards conservatively. When spending on your credit cards make sure you can pay what you charged on your credit card off that month. If you start to wrack up credit card debt you will drop your credit scores. So make sure you only charge on your credit card what you are able to pay off that month.

4. Select the right credit card for you. Once you have established some credit on your own, make sure you do some research on the credit card you are applying for. Not all credit card offers are the same. Some credit cards have yearly fees and some don’t. Some credit cards may have other perks that might be beneficial for your situation.

5. Use credit card for emergencies. Some financial experts recommend that you use your credit card only for emergencies when first starting out with credit. Using your new credit card is part of the credit score building process, but make sure at first you are real careful in regards to your charging habits. You might consider using your new credit card for situation where you need new tire or a cell phone goes south on you. Once you are custom to a credit card payment than at that point charge a little here and there on it.

6. Get a cell phone in your own name. When you are building credit you want to establish as much credit as possible in your own name. Sometimes creditors will not allow you to get a cell phone in your own name without a big deposit, but getting a cell phone in your own name builds good credit.

7. Don’t apply for several credit cards at one time. Once you have credit cards in your own name don’t go hog wild with applying for a bunch of credit. You really only need a couple of credit cards, that is it. Student really only need one credit card to start out with.

8. Pay all your bills on-time. This is one of those common mistakes youngsters make when first starting out. If you are late on anything it will affect your credit. Make sure you don’t pay anything late. Even your internet bill could affect your credit if not paid.

9. Use your student loans for education expenses only. Student loans are a great way to establish good credit. They are also a way to ruin your credit. So when you get a student loan make sure you pay it on-time and use that money for educational purposes only. Once you are done with your education, consolidate those loans into one small payment.

10. Paying down credit card balances. If for some reason your credit card balances get high during your time in school, make every effort to pay down your balances. You should never have credit card debt higher than 30% of your allowed credit limit.

If you are not sure where you stand with your credit it would not hurt to pull a recent copy of your free credit report today. A educated student saves in the long run.

CreditScoreQuick.com