Your Credit

You worked hard to get good grades in college and now you may need to work just as hard on your credit.

Here are some helpful tips to know as you move into the world of credit:

Demonstrate financial responsibility: This may sound like a no-brainer, but if you don't have a solid financial history, you have to be especially careful not to overdraw your accounts or bounce checks. These actions will show potential lenders that you are not creditworthy. And if you rent an apartment, make sure you pay your rent and utilities in full and on time.

Apply for a small line of credit: This is like starting a new exercise program–you have to start slowly. Applying for a small loan from your local bank is a good start. Or obtain a low-limit card from a local department store. Be sure to ask if they report to the necessary bureaus—if your transaction goes unreported, it will do nothing to improve your history.

Get a specific kind of card: Some cards, such as gas cards, are relatively easy to get, even without an established history. Apply for a gas card and pay it off every month—this will demonstrate that you are financially responsible if the company does report to the Bureaus.

Don't apply numerous cards at once: If you've applied for a number of cards in the last few months, a red flag will go up for lenders–they will fear you are in over your head. So, if you successfully get one card, stop there. Also, avoid applying for cards you aren't likely to be approved for–just because you receive an application in the mail doesn’t mean you are already approved. The more rejections that show up on your report, the worse your history and report will look.

Find a co–signer: If you're having trouble getting a gas or department store card on your own, ask someone you trust to co-sign the account for you. Make sure you make the payments in full and on time.

If you apply for a loan, make a large down payment: Making a significant down payment on a loan shows lenders that you are financially secure. If you don’t have the cash for a big down payment, consider borrowing some from a trusted friend or family member.

If possible, maintain a stable lifestyle: Some creditors look for other factors in addition to financial history, including how often a person moves or changes jobs. The more changes you've made in your life, the more financially risky you will appear.

Obtain a copy of your Credit Report today and review it for inaccuracies. Obtaining and reviewing your Credit Report regularly can help you keep track of your credit and also minimize your exposure to credit fraud.