It is never too early to consider establishing a good credit score. As a college freshman I haven’t often faced situations where I need a good credit score , but I know that now is the time to start to lay the ground work for the great credit score that will be essential for so many different plans I will want to accomplish in just a few short years. When I graduate college I will want to buy a car, rent an apartment, or purchase my first home. To make these dreams possible I plan to pay all my bills on time every month, keep my credit utilization low, not open more accounts than I need to, keep my accounts open for as long as possible, and check my credit reports annually to take care of any mistakes or inaccuracies that I might find on them. If I am willing to put forth the work now, I will reap the benefits before too long. According to Nerd Wallet.com, getting a Credit builder loan could also help me establish good credit. (Nerd Wallet, How to Build Credit) This is something I plan on looking into as it will do just that, build my credit in a forced savings program of sorts.
I actually found it difficult to get my own credit card when I turned 18. I was moving to different state for a couple of months for a job and called numerous companies. It was challenging to get these companies to give me a chance because I hadn’t established any credit before. I ended up becoming an authorized user on my brother’s account, and within a few months I was able to open my own account. I have been diligent on paying off my bills every single month and have made that a rule for myself; that I will never charge something if I can’t afford to pay for it right now. Many feel like credit cards are free money, but in essence they are far from that. I don’t want to ever end up paying extra in interest and fees. I have 6 younger siblings and feel that it is imperative that in today’s current culture of over spending and poor money management, that I can be good example to them in how to be financially responsible at a young age.
According to CreditRepair.com another thing to be aware of is that often there may be many negative items on ones credit report that may not even be legitimate or could have been inaccurately reported in the first place. (Credit Repair, disputes/bureaus) It is essential that these negative items be disputed, removed, and the credit report fixed as soon as possible. It also is imperative that as one needs to repair their credit, that they do their research and search out a reputable company. They must be established and have their clients best interest at heart. Sadly, there are many companies out there that will look for opportunities to take advantage of their clients who are already possibly in a vulnerable situation. (Lexington Law, credit repair companies legitimate)
Even still there are many individuals that are needing the help of credit repair companies. These companies are doing amazing work to repair people’s credit. In 2016 alone, The Lexington Law company assisted it clients in removing an incredibly large number, 9,000,000 to be exact, of terrible items off individual’s credit reports. (Lexington Law, credit repair service results) This is unfathomable to me. I plan to work hard at establishing my good credit and then doing everything within my power to keep my credit in good standing. But bad credit and low credit scores are a real life problem for so many in our nation. I am thankful that these companies exist to help individuals who are willing to do that hard work in repairing their credit. They are helping to make a brighter finacial future possible for so many people.