Credit Card Tips for Adult: Building - Maintaining Good Credit

Rajeev Reddy Nareddula 4/09/2024

Start building credit early:

It's important to start building your credit history as soon as possible. One way to do this is by getting a credit card and making small purchases that you can easily pay off each month.

Use your credit card responsibly:

Make sure to only use your credit card for purchases that you can afford to pay off in full each month. This will help you avoid accumulating debt and falling into financial trouble.

Pay your bills on time:

One of the most important factors in maintaining good credit is paying your bills on time. Late or missed payments can negatively impact your credit score, so make sure to always pay your bills by the due date.

Keep your credit utilization low:

Try to keep your credit card balance below 30% of your available credit limit. This will show lenders that you are able to manage your credit responsibly and can help improve your credit score.

Monitor your credit report:

Regularly check your credit report to make sure there are no errors or fraudulent activity. You are entitled to a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year.

Avoid opening too many accounts at once:

Opening multiple credit accounts in a short period of time can lower your credit score. Try to space out your credit card applications and only open new accounts when necessary.

Don't close old accounts:

Closing old credit accounts can actually hurt your credit score by reducing the average age of your accounts. Instead, keep these accounts open and use them occasionally to maintain a positive credit history.

Communicate with your credit card company:

If you are having trouble making payments, don't ignore the issue. Contact your credit card company and explain your situation. They may be able to work with you to come up with a payment plan that fits your budget.