How to establish credit

Test your knowledge of how to establish credit. Only six of these tips are smart ideas. Use your mouse to drag these six to the right.


Open a savings account or checking account and manage it well.
Never spend more than you have in the account. This reflects on your ability to repay loans.
Get one or two gasoline or department store credit cards and always pay your bill on time.
Take out a small loan for an appliance or a computer, and repay it monthly – in full and on time.
Get a secured credit card by opening a savings account with a balance equal to the card's limit.
Put your apartment and utilities in your own name and always pay your bills on time.
Get multiple credit cards at top quality stores and skip making payments on occasion.
Overdraw your checking account for the same amount each month. This demonstrates a consistent need.
Avoid getting a credit card until you are a homeowner.
Only borrow money from family and friends.
Use cash advances from one credit card to pay of balances due on others.
Smart Ideas for Establishing Credit
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Good credit management over time is key to building your credit and determining whether you can obtain credit for large future purchases, such as a car, a home, or college education.
Click the Next button for information about the "Five Cs" of credit.
What is credit? The benefits – and risks – of credit Good credit vs. bad How to establish credit The “Five Cs” of credit