Building a great credit score takes time; the sooner you start, the better off you will be. That being said, you can also hurt your credit score in a matter of minutes, so it is important to be aware of the requirement of your credit card. A credit score is a number generated by your spending habits, bill and loan payments, unpaid debt, credit usage, and how many credit accounts you have. If you have a high credit score it can boost the likelihood of getting a loan for expensive purchases like a car or a house. A good credit score is usually in the 700 – 800 range. Having a low credit score hurts your chances of securing loans, trying to buy a car, or withdrawing money for a house. A bad credit score is considered anything under 600. How can you start building your credit score? How can you build an excellent credit score? How can you keep a great credit score? How can you build your credit without a credit card? 

The simplest way you can do start building your credit score is by opening a credit card or getting a secured credit card. By using a card and making timely payments you can slowly raise your credit score. On top of that, many credit cards also offer cash-back rewards and referral codes that can earn yourself or referrals extra money. Credit cards are also a great source of emergency money for groceries or other payments, but it is important to be responsible when it comes to spending and not overstepping your limit. If you hit your max spending limit it may be hard to pay it off immediately. Missing monthly payments can hurt your overall credit score. Another way to build your credit score is by paying regular bills on time and avoiding payment collections.  

How can you build your credit score without a credit card? Again, making payments on time is the most consistent way to raise your credit score. This includes paying rent, student loans, phone bills, and other things. Setting up automatic payments is convenient for getting payments in on time. It is also a good idea to keep track of your credit score. You can check your score using credit karma or by regularly checking your Fico credit score. Some people open credit card accounts without utilizing them at all, because having a credit history can raise your score. You can also get approved for a credit builder loan, which can raise your credit score more quickly. Credit builder loans are a type of installment plan or payment plan that allow you to start building a credit history. 

Building your credit score takes time and the earlier you start the better off you may be when you apply for loans, a new car, or a house. Finance management or credit card use requires a lot of patience and responsibility. The most important thing to remember is to not exceed your limit as it may lead to a vicious cycle of maxing out your credit cards and struggling to pay them off.  

Demetria Slyt is a Dakota Student Opinion Editor. She can be reached at [email protected]