Image Credits: MINT

It is difficult to establish and maintain good credit after college, but before we can talk about how to improve your credit score, we have to figure out what goes into calculating your score.

  • 35%: Payment History, Do you pay your bills on time?

  • 30%: What you Owe, How much of your $5000 credit card limit is used up?

  • 15%: Length of Credit History, How long have your accounts have been open?

  • 10%: New Credit, Studies have shown that if you open lots of accounts in a short period of time, then you’re higher risk to not pay them back.

  • 10%: Credit Mix, What do you have open—car, student loans, etc.

 1. Create a Positive History:

Always make sure you’re using your FULL NAME when setting up bills and filling out credit applications.

2. Pay your bills on time:

Always.  Pay attention to your due dates and stay on top of them.

3. Budget:

Set up a budget and live within your means. Make sure you’re saving in case of an emergency.

4. Open a Credit Card:

Start small and keep your used credit under 10%. It makes a huge difference since your available credit is 30% of your credit score.

5. Get a Financial Advisor:

Whether it be a professional or your mom, talk to someone who you trust about your finances and determine a plan to get your credit established.

6. Pay More Than the Minimum:

I always pay $50-$100 a month more than the payment on my car each month. This helps me save on interest and also helps get my debt gone faster.