1. become an authorized user on your parents’ account

If your parents are cool with it, get on their account as an authorized user. The parents can monitor your spending, and you can build good credit by “piggybacking” off your parents’ good credit.

This is a good idea if you aren’t sure if you’re ready for your own credit card responsibilities on your own. It’s also smart because it might be your only option.

The Credit CARD Act makes for people under the age of 21 in need of a co-signer or being able to show proof of independent income if they want to get approved for their own credit card. Long story short: you might now be able to get a card on your own, so jumping in with your parents might be the deal.

2. know that all credit cards are not the same

Do some research before you apply for a card so you can find the right card for your lifestyle and the one with the right benefits. Also keep in mind interest rates, annual fees, credit limits and other policies.

3. use your credit card for occasional, small purchases

Let’s face it: we all don’t always have a couple hundred bucks to spend at a time. Responsible card use and on-time payments are essential to build good credit history, so watch what you buy at a time. Late payments can be a real negative on your account, so don’t spend beyond your means, but be aware that some banks close inactive accounts, so you’ll need to spend every once in awhile.

One way to keep the charges sparse is to set up a recurring payment on your credit card, so long as you remember to pay it off on time each month. This can include your groceries, gas each week, website subscriptions (like Netflix) or whatever else.

4. avoid big-ticket buys

Along with the previous tip, it’s pretty obvious to avoid buying expensive things with your credit card unless you’re able to pay it off promptly, or you’re faced with an emergency.

That’s one of the great things about a credit card: it can be used in an emergency. Credit cards are valuable tools, but they come with a lot of responsibility. Keep your debt low so your credit card can actually be used in the emergency situations you may or may not be faced with.

Buy stuff and pay it off; keep your debt low. With this you’ll be able to afford to fix your blown tire or replace your busted cell phone without exceeding your credit limit.  

5. pay all your other bills on time too

There’s no saying which landlord or business would report late payments to credit bureaus, but why take that chance? Pay your utilities, rent and other bills fully and on time, other bills including things as big of a deal as taxes to as seemingly meager as library or parking fees. It can all make a difference in your credit score as credit bureaus are developing new ways to figure out credit scores.

6. don’t co-sign for a friend

This is obvious: just don’t do it. You may love them, they may need help at the time, whatever. Just don’t. Your life could be turned upside down if the friend/relative/etc. slips up just once. The mistakes of others can mess up your credit severely.