21 is the legal age to do a lot of things, including opening a credit card account without a cosigner. At 21, you can legally take financial matters into your hand and manage your own credit. However, there are certain things you need to consider before you apply for your own credit card and open you own credit account. Read on to know more about this.

You are being watched by the credit industry
Even if you have not taken a loan or applied for credit, the credit industry is watching over you.

If you pay for a lease or make payments for your smartphone service, it will show up on the credit report if you do not pay the dues back in time. Potential employers will track your credit even if you do not have a credit card with you yet.

Check your credit report frequently
Check your credit report from time to time. If your application has been turned down, there could be a number of reasons for the same. First of all, you need to confirm your financial details on the credit report. In case you have not borrowed anything till now, you will be easily able to build your credit from the scratch.

Start with one credit card
You may find it tempting to apply for more than one credit card, but it makes more sense to start with one credit card in the beginning. After you land a job, a credit card can make it easier to make purchases and will help you build credit. Ideally, when you are using one card, you should use it only for what you would otherwise pay in cash. Keep the repayment date in mind and do not delay the repayment of your dues unnecessarily.

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Create an emergency fund
You never know when an emergency may occur in your life. If such a situation comes up, it will be difficult for you to make even the minimum repayments on time. You need to constantly work towards building an emergency fund and not rely on your credit card all the time. A cash fund will help you through difficult times.

Build credit using student loan
If you apply for a student loan and pay it on time, you can build good credit. In case you miss due dates on repayments, it will only lead to bad credit. this will decrease your credit score. A student loan is like any other loan where timely payments will help you build a good credit score. Understand the terms of the loan before you make an application.

When you are just starting your financial journey, you need to keep these above five things about credit in mind. It is your opportunity to build a good credit score, and if you make smart financial decisions and pay the outstanding amount on time, you will be able to enjoy a good credit score and quick loan approvals as well in the future.

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