No one likes to feel like they are being watched. As adults we know that there are many records being kept on us in the computer age, but we often choose not to think about it.  We know these records are there, but until one of them actually affects us, we don't pay much attention to it. Our credit record, however, is one that we should keep track of.

It is incredibly important that we build a good credit history. Your credit history is frequently used to assess your eligibility for credit cards, home loans, car loans insurance, and even jobs. Your official credit history includes what is listed in your credit report and your overall credit score.

In order to create and keep a good credit history, you need to develop good credit habits. Good financial habits will lead to a good credit rating, and that will open the door for you to receive the best credit offers and lowest interest rates. It is well worth it to establish and stick to these habits.

Pay on Time

Something as simple as a late payment can have an impact on your credit history.  Late payments lead to extra fees and interest, which can make it even harder to pay on time.  This can easily snowball into unmanageable debt, which can eventually cause an account to be passed on to a collection agency.  These things are reported to the credit bureaus and can have negative impact your credit score.

Pay as Much as Possible

When you are given a minimum payment for a credit card or other debt, keep in mind that it is exactly that.  This means that you can - and should - pay more than that amount each month if possible.  This is particularly important with credit cards or loans that have interest compounded daily.  In those cases, the more you pay and the sooner you pay, the less you will spend overall.  In addition, this will help you to pay off the debt sooner, which helps to establish a positive credit rating.

Check Your Credit

At least once a year, you should request a copy of your credit report from the three national reporting bureaus. Equifax, Experian and TransUnion are all easily reachable on the Internet or by phone.  If they don't have a credit report on you yet, then you have plenty of time to create a credit report that you can be proud of. If there is a report available, you need to check the information carefully and make certain that everything is correct. If you do notice an errors or inaccuracy, immediately contact the bureau reporting the information so they can make the necessary corrections

Balance Your Accounts

You should have a bank account with both a savings and checking account if possible.  These accounts also help you to build and maintain good credit.  Make sure that you handle these accounts responsibly and avoid bouncing any checks. You may be able to get overdraft protection on your account to help prevent this, but it is important that you keep your accounts updated and balanced.

Pay Your Utilities

When you open utilities accounts, such as electric, gas and phone services, put them in your name only when you will personally be the one paying them.  Again, pay all bills on time. If you move, be sure to close your utility accounts. People who leave an account open for a friend or the new occupant may find out later that their credit has been hurt by late or missing payments.
When it comes to your credit, remember to always act responsibly.  Your credit rating is a reflection of you that will be looked at for your entire life. Your goal should be to establish and maintain a good credit rating through your credit history.