How to Build a Good Credit Rating at a Young Age?

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When we were young, a good credit rating didn’t seem important to us. But as we get older, we realise that having a good credit score is important to achieve success. We need a good credit rating to apply for credit cards, get expensive devices, mortgages, financing, and overdraft protection for your bank account.

Unfortunately, it takes a long time to build a good credit score. Therefore, it would be a good idea to start building one at a young age. How can you build a good credit rating at a young age?

Piggyback Off Your Parents

One way to start building a credit rating early is to ask your parents to make you an authorised user of their credit card. This way, you can build your credit from their regular payments.

Pay Student Loans on Time

Student loan lenders may report your accounts and payments to a credit bureau. Therefore, paying off your student loans regularly will help in building your credit. If you decide to defer your payments, it can still help establish your credit – so long as you make on-time payments.

Avoid Taking Too Much Credit

To grow your credit rating, avoid taking too much credit card debt from various lenders. Having more than one credit card may harm your credit rating and hinder you from achieving your goal.

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