How a person’s credit score determines his/her ability to borrow and at what interest rate
This three-digit number determines a person's ability to borrow money and the interest rate they receive.
What's a credit Score?
This is the main reason why building credit early helps young people secure loans, apartments, and even jobs in the future.
What is establishing financial trustworthiness?
It is a good idea to use credit when making this type of purchase that you can pay off in full by the due date.
What is an Essential or planned expense?
Checking your credit score and credit report helps you catch these mistakes that could lower your score.
What are errors and inaccuracies?
Paying off these types of debts, such as credit card balances, can improve a credit score over time.
What are outstanding debts?
Lenders charge this to borrowers with low credit scores to compensate for the higher risk of the lender to them.
What's a higher interest rate?
A young person can start building credit by becoming this on a parent's credit card.
What is an authorized user?
Taking on credit is smart when borrowing for this type of investment, which can increase future earning potential.
What is education or student loans?
It is recommended to check your credit report at least this many times a year.
What is once a year?
Setting up this kind of feature with your bank ensures you never miss a payment, helping maintain a strong credit score.
What are automatic payments?
A credit score in this range or higher generally qualifies borrowers for better loan terms and lower interest rates.
What is a good credit score?
Making this type of payment on time each month is one of the best ways to build credit
What is a credit card or loan payment?
Borrowing is a good idea when purchasing this long term asset that can build wealth over time.
What is a home or real estate?
You can check your credit report for free once a year from three major credit bureaus.
What are Equifax, Experian, and TransUnion?
Keeping them open instead of closing old accounts can help maintain this factor, contributing to a higher credit score.
What is credit history length?
Lenders look at these, including payment history and credit utilization, when determining a borrower's loan terms.
What are the factors that affect a credit score?
Opening this type of credit account, designed for beginners, is a safe way to build credit without high risk.
What is a secured credit card?
Using credit is beneficial when it helps build this, which shows lenders that you are responsible with borrowing.
What is a strong credit history?
A credit score can be checked more frequently through these, which are often offered by banks and credit card companies.
What are free credit monitoring services?
Using different types of credit, such as credit cards and installment loans, helps improve your credit score.
What is credit mix?
Borrowers can improve their credit score and secure better loan terms by doing these two things consistently.
What are making on time payments and reducing debt?
A person can maintain a strong credit history by keeping this percentage of their credit limit in use, rather than maxing out their card.
What is low credit utilization?
It is wise to take on credit for emergencies when you don't have enough saved up.
What is an emergency fund?
Regularly checking your credit report can help detect this kind of financial crime early.
What is identity theft or fraud?
Requesting this from your credit card issuer can improve your credit utilization ratio without increasing your debt.
What is Credit limit increase?