Good credit starts young
Pamela Gray
Issue date: 2/12/09 Section: News
Even during difficult economic times, keeping your credit score high is vital to insure individuals the ability to save on interest rates in the future, according to Robert Stahl, vice president of BB&T.
Stahl said a person's credit rating is very important especially when it comes time to buy a home.
"Consistency is the key, paying your payments on time and doing your best to keep your outstanding balances low will help to keep your scores up," Stahl said.? "If your credit limit is $1,000 it is best to have your outstanding balance as low as possible."
Stahl said one way for young people to establish credit is to obtain a secured credit card and once credit is established the person can apply for an unsecured card.
According to Erin Farmer, Gaylax, Va., junior, opening or closing accounts can affect your credit score.
"It is important for people to realize how important it is to keep your credit scores high and not just open or close accounts on impulse," Farmer said.? "Always make sure you keep the accounts open with the lowest interest rates."
Stahl said monitoring your credit score will help you to know if any negative information has been reported.? "If a mistake has been made on your credit report, it is important to make efforts to have it corrected as soon possible," Stahl said.
Rachel Roberson, Memphis junior, said even for young people your credit score is very important because landlords, insurance companies and cell phone companies are checking credit to evaluate future customers.
Young people need to research what it means to maintain a good FICO score, according to Kevin Conley, commercial relationship manager, Suntrust.? "Credit cards should only be used when absolutely necessary and students must understand they are responsible for the charges.
"Too many inquiries on your credit report will also bring your score down, so be aware of how many times you have had someone run your credit," Farmer said.
Donnie Patterson, junior, Chattanooga, Tenn said, "I have always been a believer that acquiring and maintaining a good credit score was one of life's very essentials."
"For someone that is trying to establish a credit history, applying for and receiving a major bank card like visa or master card is a great place to start, Patterson said.?
"Probably the best way to begin a great credit history [or] credit score is to first be sure that you have the money in savings; then make a couple of purchases and pay them back over a six month period.? This demonstrates that you are a responsible user of credit."
More information regarding your credit scores is available at http://articles.moneycentral.msn.com/Banking/YourCredit Rating.
Stahl said a person's credit rating is very important especially when it comes time to buy a home.
"Consistency is the key, paying your payments on time and doing your best to keep your outstanding balances low will help to keep your scores up," Stahl said.? "If your credit limit is $1,000 it is best to have your outstanding balance as low as possible."
Stahl said one way for young people to establish credit is to obtain a secured credit card and once credit is established the person can apply for an unsecured card.
According to Erin Farmer, Gaylax, Va., junior, opening or closing accounts can affect your credit score.
"It is important for people to realize how important it is to keep your credit scores high and not just open or close accounts on impulse," Farmer said.? "Always make sure you keep the accounts open with the lowest interest rates."
Stahl said monitoring your credit score will help you to know if any negative information has been reported.? "If a mistake has been made on your credit report, it is important to make efforts to have it corrected as soon possible," Stahl said.
Rachel Roberson, Memphis junior, said even for young people your credit score is very important because landlords, insurance companies and cell phone companies are checking credit to evaluate future customers.
Young people need to research what it means to maintain a good FICO score, according to Kevin Conley, commercial relationship manager, Suntrust.? "Credit cards should only be used when absolutely necessary and students must understand they are responsible for the charges.
"Too many inquiries on your credit report will also bring your score down, so be aware of how many times you have had someone run your credit," Farmer said.
Donnie Patterson, junior, Chattanooga, Tenn said, "I have always been a believer that acquiring and maintaining a good credit score was one of life's very essentials."
"For someone that is trying to establish a credit history, applying for and receiving a major bank card like visa or master card is a great place to start, Patterson said.?
"Probably the best way to begin a great credit history [or] credit score is to first be sure that you have the money in savings; then make a couple of purchases and pay them back over a six month period.? This demonstrates that you are a responsible user of credit."
More information regarding your credit scores is available at http://articles.moneycentral.msn.com/Banking/YourCredit Rating.
