Building a Strong Credit Report Record After High School

Congratulations on graduating from high school! Many exciting opportunities await you, as well as many new responsibilities—including handling your own financial matters. Whether you are college-bound or plan to join the work force, it is time to prove yourself as a fiscally responsible adult. For the high school graduate, becoming more independent and understanding the ins and outs of credit reports is more important than ever before. Professionals at Consumer Credit Counseling Services (CCCS) agencies like ours say that understanding the importance of credit and how to read your credit report are vitally important aspects of becoming a responsible consumer.

No matter what the warning signs are, losing your job or becoming underemployed still comes as a shock. But don't panic. Help is out there. Debt counseling services, government employment agencies, and other career development resources can help you get back on your feet. Before you make any financial decisions, contact Consumer Credit Counseling Service (CCCS) to make sure you are exploring all of your budget and debt options. CCCS provides quality debt counseling to meet the needs of your personal financial situation.

Handling Credit Responsibly

When handled in a responsible manner, having a credit card can be very beneficial for a new graduate. It is a valuable resource to have in case of emergency, and is safer to use than cash. However, many young high school graduates mistakenly think that having a credit card is like having free money, instead of as a cash loan Many young adults, who are unfamiliar with the importance of a credit report or how to read a credit report, often allow finances to spiral out of control, and learn the hard way about how important having a good credit record really is.

If you are just starting to build your credit report history, don't make the mistake of opening too many cards within a short period of time. It is a good idea to open one card with a reasonably low spending limit so that you don't fall into the temptation of overspending. Also, make sure to read and understand the terms and conditions of a credit card before you apply for it. Many new graduates who find themselves unable to make timely payments on their credit cards don't realize that this information stays on their credit report for seven years.

Building Credit

The chances are good that the moment you enter a college campus, you will be inundated by incentives to sign up for credit card offers complete with free t-shirts and frisbees. If you currently have little or no credit to your name, you are not alone. Establishing your credit record doesn't have to mean opening a credit card. There are many other factors that comprise your credit report and help to build your credit. Here are five ways to start building a strong credit report record:

• Open a checking account through your banking institution – It is a good idea to open a savings account as well. Keep track of every check that you write, make every effort not to bounce any checks, and balance your account monthly. Once you have established a checking account, you can also qualify for a debit card.
• Apply for a small loan through your banking institution – If you are planning on making a large purchase such as a car, you can establish good credit by putting a large down payment for the purchase. Make sure that you make timely payments on your loan - late payments will reflect negatively on your credit report.
• Put all utility bills in your name – For bills like your gas and phone utility, you can build credit by putting the bills in your name. If you have a roommate, make sure that they pay you on time so that you don't have a negative impact on your credit report.
• Apply for a secured credit card – The way a secured credit card works is that you deposit a certain amount of cash with a creditor to ensure that the creditor will be paid the amount of the outstanding balance, should you default on payments. Contact a local credit union to find out more about these cards and be sure to read all of the terms and agreements first.

Your Credit Report – A Financial Report Card

Throughout your school years, you have inevitably become well accustomed to receiving a record of your academic performance in the form of a report card. A credit report in comparison is a sort of financial report card. Anyone who has established any sort of credit during their lifetime has their own credit report. It is critical for graduates who are starting to establish their own credit history to learn how to read a credit report, and understand how it works.

Credit reports are comprised of many different types of information including personal contact information, credit history, matters of public record, and any inquires made on your credit history. Learning how to read your credit report is imperative to gaining a good understanding of how well you are handling your credit matters.

Get Educated on Credit Reports

There is so much information out there about credit matters and how to read and understand your credit report. Learning to differentiate between good advice and misleading information can be a challenging feat. Since credit reports portray an image of you to potential creditors, it is important to build your credit the right way. Every consumer is now eligible to receive one free credit report per year from each of the credit reporting agencies. Credit reports can be obtained by visiting the website http://www.annualcreditreport.com or by calling 1-(877)-322-8228.

Consumer Credit Counseling Services (CCCS) agencies like ours can educate you on how to read your credit report and learn ways to build a strong credit history over time. Contact our agency via telephone, internet, or through a local credit counseling office near you to start building a strong credit record and help you achieve your financial goals over time.