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\nWhat is a credit score? It can be described as a way to measure your financial health. Financing your studies, getting a car loan or a mortgage all depend on whether or not you have good credit. <\/strong><\/p>\n In some instances, employers will even run a credit check on potential new hires. If you have poor credit, you won\u2019t be hired because your economic responsibility might be linked with other critical characteristics. So, how do you build good credit? Let\u2019s take a look.<\/p>\n How Do You Improve Your Credit?<\/strong><\/p>\n Building up your credit score takes quite a bit of time and effort. For this reason, it\u2019s recommended that you learn how to build credit at 18<\/a>. Each transaction you make with one of your credit cards is recorded, and this means that you should be careful what you use them for. You also need to be sure to pay your bills.<\/p>\n Monitor Your Account<\/strong><\/p>\n If you aren\u2019t aware of this, you can get a free credit report every year. This is one way to make sure you\u2019re not just building, but also maintaining a good credit score<\/a>. Use this report to your advantage and gain an understanding of which actions have been beneficial and which may have been damaging. Additionally, check your report for any errors and report them as soon as possible in order to get them corrected on your report.<\/p>\n Only Borrow What You Can Afford<\/strong><\/p>\n Having a credit card can give people sort of a false sense of security. One of the first things to keep in mind when borrowing money is that you need to repay this money on time with interest. When you use a credit card, you\u2019re essentially borrowing money<\/a> from the credit card issuer. Buying items you aren\u2019t able to afford can quickly get you underwater with your finances \u2013 which is a big red flag for your future employers and lenders.<\/p>\n