Simple Guide For Young Adults To Handle Their Credit Scores

The results of the quiz that was conducted by the Consumer Federation of America and VantageScore show that consumer knowledge related to credit scores significantly improved during the past year. Besides, it turned out that the quiz takers belonging to the youngest group (aged 18-34) are overall more knowledgeable than any other category.

However, these young adults often carry some misconceptions which can make them easy prey for the scam artists dealing with credit issues. While questioned about the companies which promise to erase your poor credit score providing credit repair services, 60 percent considered them to be helpful, even though it is a well-known fact that these companies typically make promises they can’t keep.

How To Keep On Top Of Credit

These days college graduates are walking across the stage with the record high levels of debts on student loans, thus keeping on top of your credit is a crucial task. You may want to buy a house or a car. You will get married and start climbing up the career ladder. Keep in mind that many potential employers check the credit reports of the applicants.

The following tricks and tips may be really helpful for you:

1. Pull the credit report. Every credit bureau provides an opportunity for every consumer to get a free credit report once a year. This means that you can totally get three reports per year. Look through your report carefully to highlight the potential mistakes and contact the bureau if you have found some errors to fix them.

2. View the FICO score. The FICO score is not free, but it is basically the gold standard. Anyway, the charges can be avoided if you sign up for the free trial at myFICO.com. You will pay nothing unless you don’t manage to cancel the trial within ten days.

3. Monitor your credit. There are specific websites which offer the free credit monitoring service that is set to alert you if there are any major changes on your report. This way you will be able to avoid the identity theft that can seriously damage your credit.

4. Use credit. You need to use credit if you want to have a decent one. When you are a young person, a credit card or a short term cash advance is the best way to start. Being aware of your credit score, you will easily determine what kind of credit card you can get eligible for. Opt for the one with no annual fee and low interest rate, then use it properly and pay off every month.

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