What is the best way to build credit?
I don’t think that there is a “best” way, but there are several things an individual can do that help. Building a credit rating can take several years. Many financial institutions solicit credit card business from post-secondary students. This is something that is fairly new, as young people without full-time jobs were always considered a poor credit risk when I was young. Today, the lenders exploit the advantages of ‘hooking’ people on easy credit as soon as possible. You can work this situation to your advantage. If you are working at a decent job and not attending school, it should be easy to obtain a card with a modest credit limit. Your first credit card will usually have a credit limit of no more than $500. Use the card regularly for small purchases, even if you have the cash on hand. Pay the credit card bill in full and on time every month. If you charge more than you can afford to pay the following month, you will, in effect, be ‘buying’ your credit rating with your interest pa
