One of the first problems you’ll face as an adult is building your credit history. Up to this point, you probably went to your mom and dad for funds. But now that you’re all grown up, it’s time to pay your own way. The tricky part is, in order to obtain credit, you need to have an established credit history. Credit history is a record of all your financial accounts, from your utility bills, loans, and even down to every late payment or money that you haven’t paid back. Banks and other creditors use this to judge the risk you pose as a borrower.

Don’t fool yourself for one second that establishing a credit history is an easy or quick thing to do. But it’s paramount that you start out your financial record the right way with these suggestions:

1. Get a credit card.

- These days, there are credit cards targeted specifically for students, and if you handle this account well, this can be a good thing for your credit history. One way is by getting a “secured” credit card, also known as a prepaid card, which gives you an account limited by the amount that you deposited into it. Your credit limit can increase or decrease monthly depending on how much you pay back into the secured credit card after spending the credit. This is a great step in building up a credit history as long as you clear your monthly “bill” on time, every time.

Tip: At first, keep the balance small on the account. That way, you can easily settle monthly even if you do consume some or all of it.

2. Open a Bank Account.

- There is a certain virtue in saving money, and you can start this as early as you can by opening your own bank account. Try to make it a habit to set aside at least ten percent of any money you get—allowances, gifts, or salary—and tucking it away in a savings account. Check with your local bank to learn about their requirements for opening one.

3. Get a utility bill in your name.

- Your payment history, which tells banks and other financial institutions if you are the type to settle your bills monthly, is an important part of your overall credit history. A utility bill in your name, such as for your cellphone service, can be another good thing in your favor as you build up your record.

4. Look for a Co-signer.

- A co-signer is someone who can help you get loans or other lines of credit, as they will basically secure the transaction by assuring the bank that they will cover the loan in case you fail to do so. This person must have a good credit history, and is preferably someone close, such as your parents. However, don’t take this as a reason not to pay for the loan, as not only will your credit history take a hit when you do so, but your co-signer’s as well.