WARNING: Credit Cards do not Equal Free Money
So for those who do not have a credit card yet, including myself, they can be confusing. They just seemed like free money, to me at least. But, I'm here to tell you that is not true.
What on earth is a Credit Score?
My dad has been urging me to get a credit card for months now and I think I am ready to take the plunge. Apparently, there is this mystical being known as a credit score that belongs to you - and it needs to be good so in the future you can apply for loans. And by using your credit card, in a resposible manner, you can build good credit and all will be beautiful.
However, if you do not pay your bills on time your credit score turns into this big monster that follows you around for the rest of your life and eventually eats you, or something like that. So I found an article that I think explains how to keep a good credit score and I thought I would share it. So check it out, and maybe you will decide to join me on the journey to a good credit score.
PS: I think I know a good bank that you can get a credit card with. **cough** MIDFLORIDA **cough**
5 Ways to Build a Healthy Credit History
If you’ve ever watched TV’s “The Biggest Loser,” you know that it’s easier to maintain a healthy weight now than try to lose weight and overcome possible health conditions later. (Or as some people say, “A moment on the lips, forever on the hips.”)
The same is true of your credit history, which affects everything from your purchasing power to your ability to get a reasonable loan rate or land a job. Building a healthy credit history from the start – rather than trying to overcome mistakes later – can save you time, energy and money.
To get an idea of your credit history, potential lenders will examine your credit score. A high credit score can make it easier to get a credit card or loan, and may result in the lender setting a lower interest rate. To boost your credit score, remember these tips:
1. Pay your bills on time. Set up automatic payments within online banking so you can be sure your payment is made even if the due date slips your mind.
2. Pay down your debt. By keeping your balances low, you are showing other creditors that you can handle available credit responsibly.
3. Reconsider closing accounts. You may be tempted to close an old credit card account because you no longer use the card. But the longer your responsible borrowing history, the better your score.
4. Think twice about opening accounts. Applying for a lot of credit at once can harm your credit score. And every line of credit you apply for will stay on your record for at least seven years, even if the account is only open for a day or two.
5. Fix errors. Review your official records from all three major credit reporting agencies (Equifax, Experian and TransUnion) and be sure any incorrect information is corrected. You can order a free credit report from each agency once a year at www.annualcreditreport.com.
So there you have it. An easy plan for building good credit. And MIDFLORIDA can help you out by offering a First Time Visa or a Secured Visa credit card. Drop by a branch to find out more.
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