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In this article we are going to talk about how to establish credit for the first time. If you are a teen or a parent wanting to help their teen establish credit so they can get car loans, college loans or just have a good credit rating, then this article is for you. By following these steps to establish credit, a young adult can have an excellent rating by the time he or she turns 18.

In order to maintain a top notch credit score you will need to have a payment history free from late payments. Always pay all your bills on time. Creditors will report your payment history to the credit bureaus. One of the most important factors that are used to determine your get credit score is your payment timing. Do you pay all your bills by the due date? Or do you let them go past? Those who always pay on time no matter what will maintain the best possible score.

Loan and credit card denial or really high interest rates. Today, most creditors won’t even consider giving unsecured loans or credit cards to individuals with bad credit scores. If they do, you will pay an expensive premium for the privilege. People with good credit can often get cards with 0% balance transfer or purchase offers or low interest rates. With bad credit, amounts of 24.99%, 29.99% or higher are common. This can cost you thousands of dollars in interest, making it difficult for you to get out of debt.

So, even if you pay the entire amount, there is a huge possibility that the bureau will have old data. This means it will show that you have used up your Max credit score limit and have not paid the balance.

Track your spending for 30 days -Everyone in the home who spends money must write down every cent that is spent. Come together at the end of the month, to review where your money is going.

Work on a better credit score. Sounds too impossible? It might be impossible to get it done tomorrow but if you look at the long run and plan it out knowing that it might take a few years, then you’ll eventually get there. And once your there and you can show how you paid all that bad debt off, that shall surely turn in to more extra points by most lenders because they can see that you take your financial status seriously. Keep in mind this might take years.

In conclusion, paying your bills on time, keeping credit card balances down, and not having so many credit cards will ultimately boost your credit score. Think positive. Never do anything that can hurt your credit because in this era, having bad credit will be harmful to your success in the future. You will struggle in life and not be able to get an apartment, house, car, truck, boat, credit cards, credit lines, etc. Always remember it is much easier to slide down the credit score slide and much harder to climb back up. With this being said. Spend responsibly.