How to Establish First Time Credit

Discipline is the first step towards strong credit

Being a recent college graduate, building strong credit is a top priority. With the help from friends and family, I believe I have what it takes to build strong credit. I will walk you through the steps I am currently taking to establishing credit and starting a responsible financial career.

Things You'll Need

• Credit card
• Discipline

Instructions

1. 

   First step is to research credit card options. As a beginner, we should stay away from high interest rate cards. Also, do not be tempted by rewards cards or frequent flier incentives. An excellent resource for finding a good credit card is:

   http://www.bankrate.com

2. 

   Another source for finding a credit card is your current bank. Your bank can help you establish credit because they may have preapproved you for some cards due to your history with them. This may provide you with lower interest rates compared to other banks.

3. Once a credit card is found, we can finally start building credit and creating a credit history. For starters, we should only use our credit card for routine purchases - Gas, utility bills, other monthly payments. In doing this, our monthly credit card bill will be constant and easy to maintain. No suprises here!

4. 

   Now for the important part - Pay your monthly bill in full! Paying the minimum payment is the first step towards debt. We must show discipline here. A consistent payment is a surefire way of building credit!

5. Be sure to monitor your payments online. Most banks have online banking options allowing you to pay your bills automatically. Also, use their online tools to facilitate your monthly spendings. Be sure to avoid carrying balances from month to month.

   Good luck!

Tips & Warnings

• Use automatic online payment! This will ensure that your bills are paid on time!