//How a Positive Credit History Can Open up Doors

Unless you’re a millionaire, one day you’ll need a loan to buy something big like a car or a house.

Todo this, you’ll need a positive credit history.

Thinkyou’re too young to worry about your credit history?Think again.

The earlier you learn good credithabits, the better. Follow these tips:

Limit your credit

For many young people, the first type of credit you’llhave is a low-rate credit card.

When you get your firstcredit card, use it cautiously. Remember, the primaryreason for having a credit card is to establish a positivecredit history.

This isn’t free money, you’ll have to payit all back, plus interest.

Pay your bills on time

Most lenders charge a late fee when your paymentsaren’t made on time.

This will cost you money and may even increase the amount you must pay on interest.

Also, payments later than 30 days past due can adversely affect your credit history.

Avoid minimum payment temptation

When you receive your credit card statement, you’ll see two numbers that jump out at you: your balance and yourminimum payment.

Pay the entire balance whenever possible.By only making the minimum payment, your interest chargeswill begin to add up, putting you into debt.

*Good to know: A credit history is basically a way for a lender to decide whether they can trustyou to pay back themoney you borrow from them