Here are some things that you should do and shouldn't do in order to build a good credit rating.

Number one:
Check your credit report. This is important to do first because you are going to want to see what the lenders are saying about you, which is if they are saying anything about you at all. The reason that you want to look in your credit report for this information is because this is where that information is contained. All three credit bureaus will have that information in your credit report so you will want to look at each bureaus credit report. The three credit bureaus are Equifax, Experian, and Trans Union. But the best news is that you do not have to pay to look at your credit report for the first time because everybody is entitled to look at their credit report free once a year. To do this you are going to need to visit AnnualCreditReport.com and follow their instructions.

Many people think that just because they have never had credit that they are not going to need to check their credit report because nothing should have been reported, but in today's society with identity theft as popular as it is you never know what your credit report can contain, so you are going to want to make sure before you go out. Not to mention that somebody else's information could be mixed in with your information by a simple mistake made by the credit bureaus. But in either case you are going to need to clean up your credit report before you apply for credit.

Number two:
Many people who are trying to build credit often tend to overlook the fact that they need to open up both checking and savings accounts. The reason that you want to establish a checking and savings account is because lenders who are looking at your credit report actually see these accounts as a sign of stability. Not to mention that this is one of the few things that you can do as a minor to help establish your financial history. Many banks have no problem allowing you to open an account, but you need to keep in mind that you will not be able to get a credit card until you have turned 18 and can legally enter into a contract. Some banks may balk at the idea but you can always look around for other banks or join an adult on a joint account.

Number three:
Understand the basics of credit scoring. When it comes to your credit score and how it is determined you need to know that the two most important factors in your credit score are:

    Whether you pay your bills on time - this is very important to do all of the time, not just when you feel like it. What you are going to want to do is set up automatic payments or some kind of reminder so that you are never late when it comes to paying your bills. The reason for this is that it only takes a single missed or late payment to trash your credit score, and it will take up to seven years for it to come off your credit report.
    How much of your available credit you actually use - never max out any of your credit cards or get even close to your maximum amount. If you keep your credit card use less than 30%, but 10% is even better, you will get the best possible credit scores. Not to mention that this can also help keep you from getting into too much debt.
But in addition to those two factors you need to understand that carrying a balance on your credit cards is not the best or fastest way to build up your credit, even if you are making payments on time. In fact you should actually try to pay your bill in full each month because this is the best way to keep your finances in shape and build your good credit.

Number four:
Piggyback on somebody else's credit. If you do not have any kind of credit history it can be tough to find people to allow you the chance to build up your credit, even though they have no idea if you are going to be a credit risk or not. But if this is the case the fastest way for you to establish a credit history can be to borrow another's record. The way that you can do this is by getting somebody to co-sign a loan for you. By getting somebody to co-sign a loan you are going to be able to get loans that you normally would not be able to get and if you pay it off responsibly you will boost your credit score. But you need to keep in mind that not only will it show up on your credit report but it shows up on the person's who co-signed the loan with you. So if you are not responsible in your payments it will affect their credit score negatively as well as yours.

Number five:
Apply for credit while you are a college student. Most people will tell you to stay away from those credit card booths that companies set up on campus, and in general this can be very good advice because of how fast college students tend to get into debt. But it has also been proven that there is no easier time for you to get approved for a credit card than while you are a college student. The reasons for this is that lenders are more willing to take risks with you that they won't take once you have graduated. Many people think that this is due to the fact that a lot of parents will bail their kids out of debt while in college but it is sink or swim once they have graduated. But keep in mind that you still want to be careful when getting a card; you only want to open one credit card account because opening a ton of them at once can make you out to be a risky customer.

Number six:
Apply for a secured credit card. If you can't get a regular credit card, which is an unsecured credit card, you should apply for a secured version to help build your good credit. A secured credit card requires you to deposit money with a lender and your credit limit is equal to the amount that you have deposited with the lender. But when applying for this type of credit card you want to screen your lenders carefully because there are a lot of bad guys out there who issue this type of card. One of the best places to get this type of credit card is at your credit union, if you use one. But you can also check Credit.com, CardTrak.com and Bankrate.com for decent lenders. Here are the things that you want to have in a secured credit card:

•     Have no application fee and a low annual fee
•     Convert to a regular, unsecured credit card after 12 to 18 months of on-time payments
•     Be reported to all three credit bureaus - without this it will not help your credit history

Number seven:
Get a store card. Keep in mind that gas companies and department stores will offer you credit cards, but for the most part these are handled through finance companies rather than major banks. And these types of cards will not do much to help your credit score as a bank card, but more often than not they are easier to get. But like credit cards you don't want to go overboard, in fact only one or two of these cards is enough.

Number eight:
Get an installment loan. This is important because in order to get the best credit scores you are going to need to mix up different credit types. The best mix will include revolving accounts and installment accounts. But before getting an installment loan you should make sure that you have had a revolving account for a year or more and have been nothing but responsible with them. And when applying for this type of loan you want to start off applying for a small loan so that you can ensure that you can always make the payments on time, but you also want to keep the amount of the loan to about a year or two. The reason for this is that the longer you have the loan the more interest you will pay so by only having it for a year or two you can build credit while saving money on interest.

Number nine:
Use revolving accounts lightly but regularly. This is important because in order for credit scores to be generated you have to have had credit for at least 6 months, and at least one of your accounts needs to have been updated in the past six months. So by using your cards regularly this should ensure that your accounts are updated on a regular basis. Not to mention that it will also keep the lender interested in you as a customer. Keep in mind that if you get a card and never use it the issuer could cancel the account.