When you work diligently to pay off a credit card, nothing is more satisfying than seeing the balance hit $0. It’s a eureka moment – filled with accomplishment and freedom. And your next desire may be to shred the credit card and close the account. But is that the right move?
You’ve probably heard by now, more than once, that it is important to have a good credit score. While this sounds good and wise, the importance of a high credit score often doesn’t sink in until you see it in black and white.
It’s no secret that a great credit score can make getting approved for a loan easier and save a bunch in interest. But what if we don’t have great credit? Improving our scores often seems impossible, given our unique financial situations. But there are simple steps you can take now to boost your score.
Most people believe if they make all of their credit cards, car loan, and mortgage payments on time, they can expect their credit score to be great. However, focusing on your payment history alone will not give you a complete breakdown of what actually goes into your credit score.
When it comes to New Year’s resolutions, saving more money and improving one’s financial standing always come out near the top of the list. And having a great credit score can help you accomplish both.
It’s no secret your credit score is important. But many are surprised how great a role it can play in the overall cost of your loan.
It’s usually not until you attempt to get a loan that you realize just how valuable a great credit score can be. Lenders typically price loans based on your creditworthiness. Lower credit scores lead to higher interest rates.
Building credit is a process that remains a mystery to many people. How can you build credit if no one extends credit until you have credit? The good news is that it is not that difficult to build credit. The bad news is that it takes time, patience, and persistent effort to make your payments on time, keep your payments current, and avoid the temptation to spend beyond your means.
As a college student, you’re probably beginning to plan for the future, making sure you are fully prepared for what life after college has in store. And, if you’re like most, you’ll want to make sure this process is as streamlined as possible.
Making the transition from high school to college means you're in store for some significant changes in your life. Among those changes is the need to establish credit and build a solid credit score.
