How can you build up credit?

You probably know that it’s important to have a good credit score in today’s world. Once you’re out of school, you’ll need to have healthy credit to buy a car and maybe someday, a house. You may not be aware that credit also affects what you pay for insurance, or that many employers look at a person’s credit history before deciding whether to hire them.

But how can you get credit when you don’t have a credit history? Here are three ways:

Tag along with your parents. If your parents have good credit and trust you, they can add you as an authorized user on their credit card accounts. That means your credit score will benefit from their good credit habits. You can also ask them to co-sign a loan for you, such as a car loan. Their good credit will help you qualify for credit of your own.

Start small with a credit card. Choose a card carefully, and then use it just a little. Charge something small every month, and then pay the bill as soon as it arrives. (Indiana Members Credit Union offers great credit card options to suit all needs. You’ll find more details on our website at

Show responsibility. If you have student loans or are renting an apartment, those activities can affect your credit. Pay your bills on time, and you’ll develop a record that other creditors will trust.

Just don’t overdo it. It’s important to use cards wisely to prepare yourself for a lifetime of good credit history.

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