Ok, let’s talk credit. What is it? Why is it important? And how to improve it?
Your credit or credit score is an essential part of your, let’s call it, Financial Power!
It helps you get things (like the super nice car you’ve been wanting) with the promise you will pay later. Your credit score reflects your ability to pay back the lender (basically who you are borrowing from) and the amount you are qualified up to.
So if you’re thinking of buying a new car, applying for a new credit card, or even buying a house in the future, build that credit up!!
*I am not a financial adviser or expert, please use your own discretion*
These are my top 3 best ways to start Building your credit!
1.Get a credit card!
Ok, maybe you have no credit at all, this is a great place to start! The more you use the card and pay it off on time the more reliable you appear and your credit grows
Here are my top two credit cards for beginners
- DISCOVER IT® CASH BACK CREDIT CARD
Click here to receive $50 after you make your first purchase!
- Secured Mastercard® or Platinum Mastercard®
These are great cards for no credit to limited credit history, click here to see if you qualify!
2. Get a co-signer!
Another great way to start off is by having a family member or very close friend basically sign for you agreeing to pay off the loan/borrowing amount if you fail to do so!
This happens a lot with first apartments and cars
When they see that you are able to maintain your payments on time your financial power grows!
3.Create Good credit habits!
-It’s as simple as paying anything you owe on time, like your bills, phone, and credit cards!
– Definitely make payments that are more than the minimum payment on your credit cards! Keep your debt ratio low!
– Do not apply for many credit cards or loans at once as it actually hurts your credit
-Keep your credit cards open, anytime you cancel a credit card think about it as erasing your evidence on your credit history, so even if you barely use that credit card it helps you look good
“Never Spend Your Money Before You Have It.”
– Thomas Jefferson
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