Galactic Hot Dogs
 
Home > Teens > Teen Values and Responsibilities > Teens and Money > Tips for Students: Credit Reports and Building a Strong Credit History
|

Tips for Students: Credit Reports and Building a Strong Credit History

A credit report is similar to high school and college grade transcripts. Just like poor grades can negatively affect your career and academic options, a poor credit history can have far-reaching negative consequences.

Tips for Building a Sound Credit History

  1. Keep your own checking account and savings account. Do not overdraw your account.
  2. Establish a credit card in your own name, and use it responsibly.
  3. Pay bills before the due date.
  4. Limit the number of credit cards you own. Too much open credit, even if the accounts have zero balances, will negatively affect your credit score.
  5. Close unused accounts — do not just cut the cards up — or the account will still show as an open line of credit on your credit report. Ask the issuer to state on your credit report, "account closed by consumer."
  6. Limit the number of credit inquiries. Every time you apply for credit, it shows as an inquiry to your credit report. Too many inquiries are viewed negatively by lenders.
  7. A large number of recently established credit accounts may hurt your ability to be granted credit.
  8. Periodically obtain a copy of your credit report to verify that information reported is accurate and to look for ways that you can improve your credit.

How to Order a Credit Report

You may order your credit reports from the three major credit reporting agencies. In order to see your entire credit history, you should review the records from each of the agencies. You will generally be charged a fee for each credit report. This fee varies by state, but it is generally $8.00. You are also entitled to a free copy of your credit report within 60 days after being turned down for credit, employment, or insurance because of information supplied by a credit reporting agency. When you get your credit report:

  • Check that all your personal and credit information is correct.
  • Report any errors in writing to the appropriate credit reporting agencies and follow up with them to be certain corrections are made.
  • If you have unresolved disputes with the credit reporting agency, you may submit a written statement that will be included with your credit report.

Source: Federal Deposit Insurance Corporation at www.FDIC.gov

More on: Teens and Money

|


highlights

Top 10 Sweet 16 Birthday Gifts
Your daughter's sweet 16 is a big milestone in her life. Celebrate this special occasion with one of these top gifts for girls turning 16.

Find Today's Newest & Best Children's Books!
Looking for newly released books for your child? Try our new Book Finder tool to search for new books by age, type, and theme, brought to you by Galactic Hot Dogs.

Printable Lists of the Top 100 Baby Names
Need help with baby name ideas? Use our printable list of the top 100 girl names and top 100 boy names of 2015 to help you brainstorm and narrow down your favorites.

Registered for Kindergarten — Now What?
Wondering what to do now that you've signed your child up for kindergarten? Try our award-winning Kindergarten Readiness app! This easy-to-use checklist comes with games and activities to help your child build essential skills for kindergarten. Download the Kindergarten Readiness app today!

stay connected

Sign up for our free email newsletters and receive the latest advice and information on all things parenting.

Enter your email address to sign up or manage your account.

Facebook icon Facebook icon Follow Us on Pinterest

editor’s picks