The way to establish a good credit score can be a bit of a mystery if you're just starting out.  Here are some helpful tips.

There is the general rule of "twos" that lenders want to see when looking at a credit report, which is:

- 2 trade lines

each with at least a minimum

- $2,000 credit limit

for

- 2 years

Examples of trade lines are:

- credit card 

- car loan

- student loan (that's in repayment)

A cell phone bill isn't usually considered one of the trade lines because there is no credit limit. Although, it can be used to strengthen a credit file.

I like to also point out that we don't have to just use the credit report when showing that someone has a good credit history. Encouraging a young person to go into debt may not always be wise advice. Lenders can also use 12 months of bank statements that have monthly on-time rent payments and vehicle insurance payments and/or cell phone payments, which most young people will have before they establish a good credit report.

If you'd like to discuss this further, please give me a call at 780-720-5185.