Credit Score

Credit enters many facets of our lives. When applying for credit, lenders/banks will want to ensure you are paying other lenders on time, which helps you develop a solid credit score. A favorable credit score can affect the terms on which you borrow money. The higher the credit score, the more likely you’ll be given favorable terms. Whereas the lower your credit score, the less favorable (higher rates) you may incur. You may also have to make a larger down payment/initial investment of an item if your credit score is less favorable.

What effects a credit score negatively?
Late payments, large balances, collection accounts, foreclosure and lots of debt outstanding. Credit scores can vary at any given any moment. For example, I charge my membership fee to a club on a credit card and pay off the balance a month later to avoid high interest payments. Getting to my point, a commonality after the holidays so many people use their credit cards for purchasing gifts, their credit scores may drop from increasing balances.

It may take a few years to establish a strong credit score, and it may start out lower than you expect. If you have only had a credit card or two for a year or so, your score may be low even if you have made all your payments on time and maintained reasonable balances. Don’t be discouraged. Establishing credit takes time and you’ll notice it gradually moving higher.

Some credit card companies offer free credit scores for you to access. The Federal Trade Commission offers you a free credit report once a year. You may order your report online at : or call 1-877-322-8228.

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