How do you establish your credit history? Even if you’ve never made a major purchase, there are ways to start building a good credit history:

Open a checking account or savings account, or acquire a debit card. These do not create your credit file, but their existence will indicate that you have money and show something about how you manage it.

Apply for a department store credit card or a major credit card (such as a MasterCard®, Visa®, or Discover® card), and use it responsibly. Pay your credit card bills on time.

If you don’t qualify for credit on the basis of your own credit file, ask someone with an established credit history (like a parent) to co-sign your application. Remember, the co-signer promises to pay your debts if you don’t.

Being responsible
Because credit cards make it easy to purchase things now and pay later, it’s easy to lose track of how much you’ve spent. Make sure you pay all your bills on time, and only get the credit cards you need—don’t get a card just because the issuer is giving away a cool gift.

To establish and maintain good credit, pay at least the minimum amount due on each account every month, and pay on time. Allow five to seven business days for payments made by mail.

Use your credit card wisely, and you’ll have a very beneficial financial tool. Use your card unwisely, and you’ll run up credit card debt you can’t afford. Nothing is easier than charging small things here and there, only to find yourself with a large bill you can’t pay.

There are easy ways to keep your spending on track. Perhaps the easiest is to record your credit card purchases in a notebook. There is also a wide variety of available financial software, such as Quicken®, to help you manage your finances. Lastly, take advantage of services your financial institution offers. Through online banking, for instance, you can see your account activity on a daily basis and even arrange to make electronic payments.