Graduation Guide
Establishing Credit

After graduation, you may be interested in establishing your credit. Good credit will become very important when you decide to make a large purchase down the road, such as buying a car or home. Below are some suggested steps for establishing credit for first time applicants: How to Establish Credit

Step 1

Open a bank account or join a credit union.

Step 2

Apply for a credit card. You might ask your bank or credit union if they will issue you one. If not, try a department store or a gas company for a credit card.

Step 3

Get a good job, with stable income.

How to Establish Credit

How to Establish Credit

  1. Open a bank account or join a credit union.
  2. Apply for a credit card. You might ask your bank or credit union if they will issue you one. If not, try a department store or a gas company for a credit card.
  3. Consider obtaining a secured credit card. This option may come in handy if you are having difficulty obtaining the above. These credit cards are based on a required deposit in a savings account.

How to keep good credit?

  1. Be patient, keep the balance low and make your payments on time. Make sure you can pay off the balances on all the items you purchase. In other words, don’t purchase beyond what you can afford.
  2. After three months of responsible payments, consider applying for one of the four largest bank credit card companies: Visa, MasterCard, American Express, or Discover.
  3. Report a lost or stolen card immediately.
  4. Establish limits on your credit card by limiting a single purchasing amount above a certain dollar limit.
  5. Check your credit card activity often using the Internet rather than waiting for the paper statement
  6. Check your credit report from time to time to check for any inaccuracies

Credit Do's

  1. Report a lost or stolen card immediately
  2. Establish limits on your credit card by limiting a single purchasing amount above a certain dollar limit
  3. Check your credit report from time to time to check for any inaccuracies

Credit Don'ts

  1. Overdraw your bank account
  2. Miss or pay late any and all creditors
  3. Lend out your card to anyone
  4. Give out your credit card number to anyone unless you made the call/contact yourself
  5. Cancel your credit card even if you don’t use it