Getting a positive start in the credit world is crucial for present and future investments and transactions.  It is much easier to establish a good foundation than to pay for it later.  So how do you make this happen?

Here are a few guidelines of what to do and what not to do.

The "Do"s 

Get a credit card. 

This is the first step toward building credit.  In order to do this, you must set up a bank account.  Bank issued cards are sometimes harder to obtain so starting off with other forms of credit, such as department store credit cards may be a good idea.

Use your credit card responsibly.

Having a credit card line does not mean you have that much more money to play with, just a new way of spending the money you have.  Be smart about it; it is easy to get carried away.  Finally, make sure you are paying off your balance every month, this is very crucial.

Budget your expenses. 

Being aware of where your money is being spent can help you control it.  Many people will be surprised at how much is spent on trivial items and how little is spent on more important things.  Having a budget will let you spend more on things you need and less on things you merely want.

And the "Do Not"s

Bounce your checking account. 

Overdrawing from your bank account can be very costly.  Some banks charge up to $30 per transaction even if it’s over by just one cent.  Go over twice in one day and that’s a $60 fine for $10 worth of stuff.

Make late payments.

This is the most critical factor.  This alone can damage your credit score the most.  Every time you miss or make a late payment, you are telling lenders you cannot handle the responsibility of debts.