Credit Score News, Tips & Advice
Website CertifiedPrivacy Protected
Credit Score News, Tips & Advice « Credit Scores > Credit Score Tips > What can young people do to increase their credit scores?

What can young people do to increase their credit scores?

By Brian Anderson
Published: Sunday, October 4th, 2009

If you are one the many young people eager to get your hands on your very first credit card, there are some things about the world of loans and credits that you should fully understand first. On the other hand, if you have already successfully managed to get one, take some time to understand the concept of credit scores and credit report

Credit scores apply not only to credit cards but to loans and other forms of credit as well. You need to keep your credit score high so that the next time you apply for a credit or a loan, or insurance, your lenders would give you better rates and terms. The other thing you need to know is where your credit score is based. 

There are many information available online that can clarify things for you. Apart from these, there are also several credit score tips you can study and apply to make increasing your credit score easier for you. Here are some of these credit score tips. 

Create a new account

The first thing you should do when you have finally decided to join the population of credit card users is to create a new account under your name. Don’t forget to use it only for important items and for things that you can really use. Several credit score tips you should consider when you are a newbie on credit cards, are those that revolve around the proper ways to use a credit card. 

Responsibility also means paying dues on time and charging regularly. Another of these useful credit score tips is to choose accounts that have high credit limit to start, and always keep the balance below 25 percent. You should know that balances that almost max out your credit card will pull down your credit score. 

Piggyback on another account

If you choose to have your name under another person’s account, like your parent or older siblings, choose someone who is responsible in maintaining credit accounts. If they have good FICO scores, yours too could be boosted if you piggyback on them. However, do consider that you need their approval. 

Secured Debt

It’s understandable if you have difficulties applying for the regular credit card. This is because creditors consider credit history and the experience you have handling debts when you apply for a credit card or a loan. But if you don’t get the regular card, one of the credit score tips credit score tips tells you to go for the secure credit card. Secure credit card use the money you have applied for the account to pay credit. With such account, you are guaranteed to not make overcharges or miss payments. If you use the secure credit card often, your FICO score can increase.

Avoid too much credit

People who are introduced to the advantages of credit for the first time have the tendency to get overwhelmed. This is perhaps the reason why within a very short period of time, application to loans and other forms of credits happen. When you apply for too many credits, your score will drop because each time you make a credit inquiry, it is recorded on your credit report. Many credit score tips should remind you that credit inquiries do not look good to creditors because they could means that you are having financial problems in paying your debts.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.