Now that your college career is over and your ‘real’ career is beginning, you’re going to start feeling the pressures of adulthood. While you may be reluctant to take on anymore debt, this is the right time to start building credit. Don’t worry… you can do this in a small, manageable way without racking up debt.
One way of doing this is to use a credit card to pay small bills such as your cell phone bill. It’s a small enough bill for you to handle and the regular monthly payment looks good on your credit history. Here’s how it works. Every month take your credit card and use it to pay your monthly bill. Within 30 days, use the cash you were going to use to pay the cellphone bill and pay your credit card balance. In 6 months or so, you will have great credit history. Word of caution: the goal here is to use the credit card only for the things you have cash to cover it with.