Building credit is a highly valuable technique that you may not find important in the near future but over time, have a high FICO will truly be an asset in your life. With a strong credit report you can be approved for many various loans. These can include auto loans, home loans, home equity lines of credit, business loans, business lines of credit, and other various forms of SBA loans.
You see with credit there comes responsibility. You must show that you have a high level of responsibility to the credit bureaus if you want to have a high FICO score of 720 or greater. The credit bureaus include Trans Union, Equifax and Experian. They will rank you credit score according to many factors which include the level of debt you carry, the amount of credit you currently have and how you use your credit and service your debt. Although these are not all of the points that are scrutinized, they do make up a great majority of what determines your credit score.
If you want strong credit score you must convey to these bureaus that you are worthy of one. Doing this is like building any other form of relationship. Time and persistence are really the key factors meaning you must show that you can handle credit responsibly and take on debt for a long period of time. The more you can show this with several open lines of credit, the higher you score will be. It is best to start as soon as possible to service your loans or credit cards and show that you are truly worthy of a strong credit score today.