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Credit Establishment 101
There will come a day when you need credit. You may want to
buy a home or a car and your credit rating will become very
important to help make these dreams come true. One of the first
things you will need to learn is the basic principle of money
management, especially the ability to repay your creditors on
time within the 30-day grace period they establish for you. Most
people secure credit cards as the first way to establish credit
in High School or College. Upon getting the credit card, usually
a low spending limit, the ability to repay the card in an orderly
fashion will help you establish a positive credit rating with the
major repositories.
How your score is recorded
Upon making your monthly payments to the Credit Card Company
or bank, your information is electronically transmitted to a
credit-reporting agency. Trans Union, Equifax and Experian are
the three major credit agencies. Once you have made your payments
consistently your rating will rise accordingly. Once your rating
has hit 650 or better, your mailbox will become flooded with
attractive offers for credit cards and loans. People will want to
give you the world because you can pay your bills in a timely
manner.
What else is affected with the credit rating?
You may be surprised but if you do not act financially
responsible, it can prevent you from getting a job, renting an
apartment or even opening a bank account. The fact of the matter
is that your credit rating is very important in today's society.
Your ability to keep it up to date by monitoring it is crucial.
Once a year you can pull a free credit report from each agency.
Check the report for accuracy, should it be reporting errors
contact them immediately to resolve the issue. Some people might
think a simple phone call can fix everything. That couldn't be
farther from the truth, repairing damaged credit takes time and
only you can do it. Once you file a claim, stick with it and make
sure it gets resolved. Once a correction has been made you will
receive notification or an amended report from the agency showing
the change. Your credit report has much more at stake for you in
the present and in the future, watch it closely.
About The Author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the
latest on personal finance, debt elimination, budgeting, credit
cards and real estate.
MORE RESOURCES:
MORE COLLEGE CREDITChicago Sun-Times, United States - 10 hours agoDespite the current nationwide credit crunch, the State of Illinois secured $100 million for the student loans by tapping a new source -- credit unions. ... |
Credit - Google News
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