1. By: Jamelle Horne

2.  Important because it allows you to purchase items that would not be accessible to you without good credit.  Applying for loans becomes easier  Purchasing Cars becomes easier  Living arrangements in terms of buying a home  Also a easier form of payment instead of carrying cash around

3.  Creating an account – You must go to any respective bank and create a revolving account.  This Grants the consumer a line of credit  Initially there is a credit limit put in place that forces one to stay under in terms of spending  As time passes and payments continue to be on time, the credit limit raises in terms of money

4.  After opening the account, the consumer must provide past information of money issues and personal information in order to eligible to apply  Having a checking account with the same bank is great way to have a chance of getting a credit card.  Also banks are attracted to giving credit cards to college students. This is called a student credit card

5.  Once you are eligible for a credit card you have to call the bank in order to activate the card.  Once you are in the clear you are safe to make your first purchase.  The plan is to make payments just as many times as you purchase items with your credit card.

6. DO’SDONT’S  Make sure you only make the “need” type of purchases  Let your credit be aware that you will not be able to make your monthly payment  NEGOTIATE A LOW INTEREST RATE! This is how banks make their money.  Make everyday purchases such as; food,gas,clothing. Leads to debt  Making the minimum payment each month  Close out a credit card without knowing how your credit will be impacted