Building a good credit score is not as difficult as it may sound. If you’re just starting off in life, then a good credit score may only be a student credit card away, or if - like me - you have hit some bumps in the road, you just need to follow a few simple guidelines.

Even if you’re new to the world of credit, or are recovering from bad credit, these 5 tips to building a good credit score are essential.

Don’t spend more than you can pay back. Some advice says not to spend more than you make, but that’s kind of tricky: you probably already have non-credit bills (such as television and electricity) that need to be paid every month. So, subtract your monthly bills (loans, food, and utilities) from your monthly income. How much you have left over is how much you should limit yourself to spending on a credit card.

Pay back the entire debt every month. Alright, so there will be dry times when you can’t pay back your debts, but overall you should pay off your credit cards in full every month. Carrying a debt over month to month can be a very bad thing in the long run. While it won’t hurt your credit score when your carry debt (after all, credit card companies make their money on interest rates), it will lead to several bad habits, which can put you in a very dangerous hole.

Get into good spending habits. Don’t swipe your card every time you go buy a newspaper or coffee. Use your credit card for larger purchases which you don’t carry any cash around for.

Treat it as credit. Too many people consider credit to be “free money.” Credit is not free money - it must be paid back, one way or another. Going out and maxing out your line of credit just to buy some crap you really don’t need isn’t something a fiscally responsible person would do.

Always monitor your credit score. The most important piece of advice I can give you is to make sure you closely monitor your credit score, and always get the free credit report you are legally entitled to receive. Go through it with a fine-toothed comb and report any inaccuracies.

Keep these tips in mind and you’ll be well on your way to building a good credit score. Remember: your credit is your future (And your children’s future, too).

[tags]build good credit, good credit score[/tags]