It’s a catch-22 of sorts: You need good credit in order to get a good interest rate on a loan, but you need a loan in order to prove yourself worthy of credit. Some young adults and others who might not have any credit history find themselves in this predicament, but there are ways that you can establish credit for yourself now to make borrowing money easier in the future.

The first thing that you can do to establish yourself as someone a bank will want to lend money to is to get a job. Lenders look at your employment history to decide whether to lend you money. If you are unemployed, or if you switch jobs often, this can be a red flag to banks that you might not be trustworthy. It’s best to stay with an employer for a year or two before moving on in order to show that you have stability.

Stability is also important in your residence. Lenders do look at how often you move. Someone who changes their address every few months might also have sporadic income, and a bank might not want to take a chance in lending you money. When you are renting it’s normal to sign a lease for a year, so try not to break your leases in order to create a good moving history. Another benefit to not breaking your lease is that your landlord will not be coming after you to pay for the months left on your agreement, which can jeopardize your credit rating.

Once you have a job, open a bank account. Banks don’t report to the credit bureaus with normal checking and savings account information, but it is to your benefit to start saving money. If you apply for a mortgage or car loan, your lender will often want to see at least two months’ worth of bank statements. Having a savings account will make it more likely that you will be saving money. Even a modest amount put away each month will begin to add up. This can be your down payment when the time comes for you to buy a car or a home, and having a savings account can help convince your lender that you are responsible.

While the interest rates on department store credit cards are often high, it does not hurt to open one or two of them. Do not open more than two and do not charge more than you can pay off in one month. Use these store cards for small purchases for which you already have the cash put aside. When the bill comes in, pay it off immediately. If for some reason you cannot afford to pay the whole balance, make sure that you pay more than the minimum amount due, and make sure that it is sent out early.

Most importantly, make a budget and stick to it. Always pay your utility bills in full and on time, because utility companies can, and often do, report late payments to the credit bureaus. Pay any loans or credit cards on time as well. Live within your means, and don’t overextend your finances.

Your credit is a very important thing to maintain. Having stability in your life, being aware of which bills are due when, and sticking to your financial plan now can have an excellent effect on your future. Remember that not taking care of your finances now can also have negative consequences for your future. Be careful in borrowing money and always pay back what you owe so that you can establish yourself as worthy of credit.