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Establishing a Good Credit History ESTABLISHING A GOOD CREDIT HISTORY Building a good credit history is an important part of your future. You’ll have an easier time getting credit for the things you want and need by taking steps to build a solid foundation now. While you’re in college, a good credit history can make it easier for you to get an apartment, utilities in your own name, or a car. After you graduate, a good credit history can open doors to new homes, new cars and new jobs. It means you’ll have an easier time getting credit when you want and need it. Remember, you won’t be in college forever. Here are a few steps you can take to establish a credit history that presents you in the best light: · Open a checking account with overdraft protection. Overdraft protection is a form of credit. If you write a check over your balance, funds are charged against your overdraft to pay the check. Make sure you pay back your overdraft line promptly. · Set up utilities in your name. Telephone, gas, electric and cable charges are extended to you on a credit basis, and your payment habits are part of your credit history. Paying promptly, and in full, reflects positively on your credit history and may also let you avoid having to put down a deposit the next time you set up utilities. Be careful if you’re splitting the costs with a roommate, because if the utility is in your name, you are still ultimately responsible for the entire bill. · Use your credit card responsibly. Your card is a great way to make purchases and get cash. When you use it responsibly, you’ll not only enjoy greater convenience at college, you’ll build a credit history you’ll need when you graduate. |