How to Start Building Good Credit How You Can Improve Your Credit Score Here ph
Another way to establish a credit history is to get a secured card through your bank. (Make sure the bank reports the secured card activity to the credit bureaus.) You put a certain amount of money into a savings account and the bank issues you a card that is "secured" or backed by the funds in that account. For example, if you put $250 into an account, you will be able to charge up to that amount, minus any fees. (These fees can be high so make sure you’re aware of them before you apply.) Again, after using the secured card responsibly over six to eight months, your bank as well as others should start sending you offers for a regular or "unsecured" credit card. That doesn’t mean you should apply for them all because doing so would hurt your credit score. Instead, review the credit card agreements, promotions and rewards and pick one major card.
The three major credit bureaus, TransUnion, Experian and Equifax use similar scoring methods but the score range that is most widely recognized goes from 300 (horrible) to 850 (perfect). In the current economic environment you need to have a score above 720 to get the best loan interest rates. As I’ve mentioned in the past, your credit report and debt payment behavior will have a huge impact on your life, e.g., employment eligibility, utility rates, lease requirements, car and home loan rates and more. If you start off right and understand the rules of the credit game, you can establish a great credit profile and reap the rewards. This information was taken from “Women Empowering Themselves: A Financial Survival Guide” by Hollis Colquhoun and Antoinette Babek.
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Do's and Dont's of the Credit Card Game Here pf Futhermore: How to Start Building Good Credit
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