You must never underestimate the value of having good credit. You will definitely need your credit score in the future. If you are a student, you'll need to borrow a certain amount using a student loan in order to attend school. At this point, your credit history will definitely matter and will have a big impact on getting you the funds that you need.
If you are applying for a student loan, your creditor or the lending institution will probably request a copy of your credit report and the credit score, which comes from an authorized credit-reporting agency. This will help identify your credit criteria and will determine if you are qualified for a loan. And if you are, your credit score will influence what interest rate you will be paying for the funds.
You must be able to demonstrate good credit to be approved by most of the private student loans. This also applies to the loans you might need such as auto loans, business loans and mortgages.
Here's what you can do to keep your credit score high and your credit good.
1. Make your payments prompt and timely. Make sure that you don't miss any deadline.
2. Pay the minimum monthly payments. This will repair your credit score remarkably.
4. Maintain available credit on your open accounts.
5. Monitor your credit at all times. You can do this with a credit monitoring service, Credit Check Total, for example. If you don't want to the monthly fee, you can request a copy of your credit report at least once a
year from each of the three national credit-reporting agencies.
6. Check your reports for negative information. You must dispute any negative information that appears in your report right away, time is critical in this.
7. Keep usage on revolving accounts low. Maintaining 10% or less usage on your credit cards will do wonders for your score.
8. Remember that you must know how to prioritize your needs. Leave those credit cards that are not needed aside for a while. Then after you have recovered from all the other debts, you can add these cards back into your wallet. The new accounts will lower the average age of your account and this is something that counts toward your FICO score.
9. Keep inquires to a minimum. Applying for loans at car lots, for example, can put as many as 7 inquires on your report. Pro Tip:Apply for loans from credit unions or banks for a single inquiry instead.
10. Make sure that you don't close accounts with the thought that the account will be removed from your record. That will not help at all. Closing accounts can sometimes even hurt your score.