Consider these suggestions and start building your credit so you have a healthy retirement.
Some young people prefer to avoid the issue of credit because it seems too complicated and does not deserve their attention so early in life. But the truth is that it is not wise to postpone it. If you have not had a credit card or a loan, your history is blank. Therefore, it is not registered anywhere that you can handle the credit responsibly. This may affect you when applying for credit in the future.
Start credit to generate:
Open a bank account
If you would like to apply for loans, or a credit card, you should start by opening a bank account. Although doing so is not mandatory, it will help you in your credit history.
Request a secured card or a secured loan
Once you have applied for one of these two options, it is very important that you always make your payments on time. If you decide to apply for a loan, get a qualified co-debtor; a relative or legal representative. That person will also be responsible for the loan you request.
Use the card very carefully
To establish a good credit history, try to use the card moderately. Pay with her only the amount you can contribute monthly. It is recommended that you do not use all available credit, so you show that you manage your debts responsibly and improve your credit score.
Order credit reports
There are agencies to which you can order your credit reports: Qualfax, Exporian and Translinks, among them. After using your credit for six months, check how your history is going. Check the positive and negative aspects to correct what you are failing.
Search for other credit products
There are other products that can help you generate credit history.Starting Connection allows you to apply for a car or lease loan backed by a qualified co-debtor. Another option is Creditmatic , which allows you to place the approved loan money on a certificate of deposit that you will be paying for the term you choose. When paying off your loan, the bank will disburse the money from your certificate, in addition to the interest generated.
This process of generating credit is something that takes time. You must be responsible with your financial decisions and be very patient because the best way to build your credit is little by little. This will help you generate a solid track record, without committing yourself too much by requesting loans of large amounts or too many cards. Remember, it is not just about paying your debts on time, it is important to build a solid financial future; and that includes saving for your retirement.
Want more tips for your financial future? Click here to watch video about these strategies. For more information on credit, visit here and visit our Bankingwise section for tips that will help you achieve your financial independence.