When starting out in your adult life, many of the youth of today are thinking about their credit rating, especially after learning the lessons from their parents.
It is very usual to grow up in this era knowing what credit and debt is, because as a young child, we all see our parents flicking through bills and finance papers, quite possibly also it may be a dinner conversation between parents.
A responsible parent will let their children know about this part of adult life, as it is a big and important part.
The parents often worked their way into a good credit rating, and into a comfortable way of life financially, if not they worked out their problems.
Children see and learn, and many have remembered the experiences of their parents as they start their adult life.
As a teenager becomes an adult, he/she may start thinking about their credit rating, and how to go about getting a good start in this area.
Around colleges, in the mail, on television and radio, there will be all these offers and advertisements offering credit accounts at low introductory rates attempting to get new customers.
What isn't necessarily readily available is the information on how to build good credit, and make a platform for your financial future.
In the next few paragraphs, I will give you an example of how to get a good start to your credit score, and how to keep it continuing on into the future.
This is just a suggestion, and there are other ways to build a good credit history.
The 0% Introductory Rate Firstly, when getting your first card, try to find an offer that includes an introductory interest of 0%.
This rate will normally last around six months to a year, after that time the interest rate incurred will be much higher than expected.
This is ok, as you will see further on in this plan.
Also, with your first credit account, you won't receive a high credit limit.
This is due to your lack of credit history and the banks unwilling to take a chance on an unknown individual.
Making Your First Purchase Once you have you have signed the dotted line and received your card in the mail, plan you initial purchases wisely.
Remember, you have 0% interest on your repayments, and a time limit on this.
Take a look at your needs, and see if there are any big purchases that may need to be made.
For example, if you are starting college you may need a laptop, or some second hand furniture for your own place.
See if you can make this purchase on your card, and how much the repayments will be each month.
You can use this account to pay off the item with in the introductory period, before the higher rate kicks in.
Stick to this plan, and don't overspend or make any impulse purchases on your card.
Make Small Purchases You Can Easily Repay So, you've stuck to your plan, paid back the balance in full and now the introductory rate is over.
Don't stop using your card, make small purchases to keep the card and your credit score moving.
Use this to pay for your weekly groceries, or any bills that you may have.
Pay the balance back in full each month, and you now have a great credit rating to start your life with.
It is very usual to grow up in this era knowing what credit and debt is, because as a young child, we all see our parents flicking through bills and finance papers, quite possibly also it may be a dinner conversation between parents.
A responsible parent will let their children know about this part of adult life, as it is a big and important part.
The parents often worked their way into a good credit rating, and into a comfortable way of life financially, if not they worked out their problems.
Children see and learn, and many have remembered the experiences of their parents as they start their adult life.
As a teenager becomes an adult, he/she may start thinking about their credit rating, and how to go about getting a good start in this area.
Around colleges, in the mail, on television and radio, there will be all these offers and advertisements offering credit accounts at low introductory rates attempting to get new customers.
What isn't necessarily readily available is the information on how to build good credit, and make a platform for your financial future.
In the next few paragraphs, I will give you an example of how to get a good start to your credit score, and how to keep it continuing on into the future.
This is just a suggestion, and there are other ways to build a good credit history.
The 0% Introductory Rate Firstly, when getting your first card, try to find an offer that includes an introductory interest of 0%.
This rate will normally last around six months to a year, after that time the interest rate incurred will be much higher than expected.
This is ok, as you will see further on in this plan.
Also, with your first credit account, you won't receive a high credit limit.
This is due to your lack of credit history and the banks unwilling to take a chance on an unknown individual.
Making Your First Purchase Once you have you have signed the dotted line and received your card in the mail, plan you initial purchases wisely.
Remember, you have 0% interest on your repayments, and a time limit on this.
Take a look at your needs, and see if there are any big purchases that may need to be made.
For example, if you are starting college you may need a laptop, or some second hand furniture for your own place.
See if you can make this purchase on your card, and how much the repayments will be each month.
You can use this account to pay off the item with in the introductory period, before the higher rate kicks in.
Stick to this plan, and don't overspend or make any impulse purchases on your card.
Make Small Purchases You Can Easily Repay So, you've stuck to your plan, paid back the balance in full and now the introductory rate is over.
Don't stop using your card, make small purchases to keep the card and your credit score moving.
Use this to pay for your weekly groceries, or any bills that you may have.
Pay the balance back in full each month, and you now have a great credit rating to start your life with.
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