| Money Sense: Great Credit
June 6, 2007--- When it comes to our credit standing, we spend a lot of time worrying about the penalties of having a low credit score, such as being handicapped in our ability to buy a home, a car or anything that involves managing a debt obligation. Unfortunately, we don't put enough emphasis on why it is worth making the sacrifices necessary to build our credit. The median credit score for all Americans is 723. Your goal should to be to equal or better that score. To motivate you, here's what's in it for you: You pay less to borrow money. The higher your credit score, the lower the interest rates you'll be able to get on your mortgage, auto financing, credit cards, etc.Money for your new business. If you are looking to become a first-time entrepreneur, and want a small business loan, your personal credit history will help to determine whether or not you will be trusted by potential lenders.A better job.
Start building positive credit history in 3 simple steps
Credit history, credit score, credit report-- these words will greet you sooner or later when you apply for a loan, mortgage, rent an apartment, apply for a job, or last but not the least apply for a credit card. Efforts towards building a good credit history should begin early, right from the student life. Ironically most of the students are not aware what is needed to build a credit history. In this article we look at three simple steps that can get you a jumpstart towards good credit history. 1. A checking or savings account Begin with opening a checking account in your name. This is the first step towards acquaintance with banking and financial institutions. The idea is to open a bank account as early as possible, keep it in good standing, and it should reflect financial stability.
Mum's the word for bad credit
A LOVING daughter was left debt-ridden and confused after her poverty-stricken mother stole her credit card. Rachel Wilsons mother had racked up so many bills that she waited until her daughter was at university before pinching her account details and abusing her new credit card. But despite 22-year-old Rachel being threatened by bailiffs and having her credit record ruined - meaning she has no chance of buying a house or car for five years she refused to shop her mum to police. Ironically the Bournemouth student only took on a card after a university friend advised her that people with no history of repaying loans could find it hard to get credit. In order to build up a decent credit history, I decided to use the card a few times and then pay off the balance, says Rachel, then in her third year.
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