Money Infant

Ah freedom, you’ve been waiting for this for 18 years. Now, you are responsible for yourself. You can come and go as you please and enjoy things that you were not allowed to in the past. However, with freedom comes responsibility. Now, you are financially responsible for yourself as well. This means that it’s up to you to create and maintain financial stability for yourself. One of the biggest tasks to undertake during this time is going to be building your credit score. With a good score, you can qualify for loans at low rates! You could buy a car, house or even get a credit card. But, what is the fastest way to build your credit scores? Follow these steps…

Build Your Credit Fast – Step By Step

Step #1: Get And Keep A Job – One of the factors included when determining your credit score is your length of employment. If you can keep a job, chances are, you are goal oriented and you will properly maintain your debts!

Step #2: Start A Line Of Credit – The bottom line is, before you can have good credit, you have to borrow money. Now that’s a catch 22 isn’t it! You have to have good credit to open a loan, right? Well, not necessarily. You can start by using a secured credit card. These cards are specifically designed for people like you with no credit who want to improve their scores. However, before you can use your card, you are going to need to make a security deposit. The deposit helps to lower the risk of lending to people with no history of borrowing.

Step #3: Actively Use Your Card – There is an old saying, to have credit, you must have debt. Therefore, if you don’t actively use your card, you will be missing a big key, debt! Now, this doesn’t mean that you have to rack up a balance that you can’t afford to pay off. As a matter of fact, it’s best to keep your balance below 50% of your credit limit! Spending more than half of your limit can have a negative effect on your credit score.

Step #4: Make Consistent And Aggressive Payments – This is how you really show the credit reporting agencies what you’re made of. Make sure that every month, your payment arrives with the lender no later than 2 weeks early. This will show the reporting agencies that you stay on top of your debts and make sure to pay on time. Also, send at least double or triple your minimum payment every month. Doing so will show the credit reporting agencies that you are aggressively paying back what you spend. These factors coupled together will show that you are not only financially responsible but, you may be capable of taking on more debts, debts like auto and home loans.

Step #5: Always Remember That Consistency Is Key – As you build your credit scores, keep in mind that one month off track could lead to you not being able to keep your goals. Even once you have reached your goals, it is important to display consistent spending and payment habits. Doing so will maintain the great credit score that you’ve worked so hard to get!

About The Author – Joshua Rodriguez
This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance journalist. Join the discussion about this article or any personal finance topic of your choice on Google+!