How To Build Credit In Your 20s

What is the first step to build credit in your 20s?

• Show Stability

• Monitor Your Credit Score

• Evaluate Options

• Forge Responsibility

Which of the following is NOT listed as a way to show financial responsibility?

• Paying all bills on time

• Putting some bills in your name

• Investing in stocks

• Opening a checking account

What does a steady job signify to lenders?

• A high credit score

• Ability to travel

• Financial instability

• Likelihood of having money to pay them back

What should you do if you're turned down for a credit card?

• Close your bank accounts

• Immediately apply for another credit card

• Stop applying for credit

• Apply for a retail card

What is a secured credit card?

• A card with unlimited credit

• A card without any interest rates

• A card only for purchasing securities

• A card that requires money in an account as security

What accounts for 35% of your credit score?

• Payment history

• Amounts owed

• Length of credit history

• New credit

What is the significance of having a 'good' credit score?

• Eligibility for high-interest rates

• Most lenders will approve loans and credit cards

• Automatic wealth

• Ineligibility for any loans

How can you find out your credit score?

• Checking your bank balance

• Guessing based on spending

• Asking a friend

• Visiting www.annualcreditreport.com

What should you compare when shopping for credit options?

• The size of the credit card

• Color of the credit cards

• Celebrity endorsements

• Interest rates and fees

Why is it important to manage your credit responsibly in your 20s?

• Because it's legally required

• To maximize building good credit

• To prepare for retirement

• To avoid having to work