 TITLE: Why You Should Build Good Credit Even if You Aren’t Planning a Major Purchase CONTENT: How to Establish a Solid Credit History\n---------------------------------------\nIf you haven't started building credit or you have negative items on your credit report, now is the time to start working on it—even if you're not planning a big purchase with a loan anytime soon.\nHere are some ways you can do it:\n*   **Become an authorized user on a credit card**: If you have a parent or close relative with good credit, ask them to add you as an authorized user on their account (typically a credit card). The account's history will be added to your credit report.\n*   **Use a secured card or credit-builder loan**: Getting a secured credit card or credit-builder loan can help improve your credit score as long as you always pay on time. Paying off your balance every month will spare you from potentially costly interest.\n*   **Keep credit card balances low**: Your credit utilization ratio plays a major role in determining your credit scores, so you'll want to keep your credit card balance low relative to your credit limit. Experts say a credit utilization ratio above 30% will hurt your credit scores. You should aim to get your ratio as low as possible.\n*   **Avoid unnecessary debt**: Only apply for credit when you need it. To keep your payments manageable, avoid taking on debt that you don't need.\n*   Add your rent and utilities to your credit report. Programs like Experian Boost™† and some rent reporting companies allow you to add your rent, utility or telecom payments to your credit report so they can count towards your credit score.\nAs you follow these and other credit-building tips, you'll have a much better chance of saving money and being prepared in case of an emergency or a large planned expense. Ultimately, it's important to build credit now so you have it if you need it. END