Getting and keeping good credit isn't hard! It's about being informed, making good decisions and being a responsible consumer. Here's a brief explanation about what credit is and why its important to you.
Credit is borrowing money to pay for something that you want now when you don't have enough money to pay for it in full. Even signing a rent agreement for a year but not paying all 12 payments up front is a credit agreement, same as a cell phone. The essential thing to know is that when you borrow money and make an agreement to pay it back (by signing an agreement) you have to follow that agreement 100%. If the terms of the agreement say you'll pay it back $100 on the first of every month then that is what you must do.
Tip: Pay attention to the terms of the agreement, know them inside and out and stick to them. Most of the companies that you borrow money from like banks, car companies, telephone companies etc. report how you repay the loan to a CREDIT BUREAU. The next time you request a loan the company will take a look at how you repaid the last loan, as you borrow money and pay it back your credit history is established.
The first time you attempt to borrow money is tricky because the bank doesn't have a history to check so it is risky for them. The best way to establish a credit history is to get a secured credit card, I can help you with that.
TIP: When you get the card it is crucial to make regular monthly payments and keep the balance below 75% of the limit. The longer you keep the account in good standing the more points you get toward your Beacon Score.
Call me today for more information about your Beacon score, what it is and why it is important.
