Credit means much more than credit cards. It represents the entire lending industry, which is the foundation of our economy. We can see know with the financial crisis that if people stop lending money to each other nothing works. The whole game is run on lending and grinds to a hault immediatley if it banks can't make a loan. You can see why establishing good credit is so important. If you don't have good credit it will be nearly impossible to get a good loan. And if you can't get a good loan you can't get the stuff it buys. In times like these, when it is becoming increasingly difficult to get a good loan, you want to have as good of credit as possible. Few people realize it, but there are professional organizations monitoring your credit. They monitor the success with which you make your payments and mark down your score if you are late on any of them. Depending on the type of loan and the lateness of the payment, you might loose a great deal of point of your credit score. So how can you establish good credit?

One of the best ways to establish credit is to borrow a small amount of money. Whether that is through a credit card or a small car loan from a bank. You need to be very careful with debt because it often results in worse credit rather than better. You need to start small and with things that you know you can pay off quickly. Never take out a loan for which you do not have a clear plan to pay back. If you know you can make the monthly payments all the time, then you will establish some good credit. This takes some real discipline. The important thing to remember is that you are primarily using the loan at this point to establish credit. Credit cards can be had easily. We often get them sent to us in the mail when we don't even want them. Only use one at a time and consider them to be like cash; only use them when you know you can afford to do so. Start with a small purchase and then pay it back before you make another purchase. Make sure to pay the card off completely and you will have established some good credit without a nagging credit card debt.

Another way to establish credit is to live in one place and hold a single job for a long period of time. Although this might or might not alter your credit score itself, it could help a bank or other lender see that you are reliable and stable. Anything that helps to establish some sort of regularity. Even utility payments kept in your name will help you to develop good credit. With some persistence and regular payments you will help to establish great credit. This will continue with you throughout much of your life, helping you to make responsible purchases and to improve the quality of your life. Good credit is absolutely essential to living well. Take it seriously and you should do just fine.