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You've all heard the term "credit score" by this point in your life, and you probably know you want a "high score," whatever that means. This page will help you understand how to manage and increase your credit score. Before we start though, it's important to look at the advantages and disadvantages of using credit.
You've all heard the term "credit score" by this point in your life, and you probably know you want a "high score," whatever that means. This page will help you understand how to manage and increase your credit score. Before we start though, it's important to look at the advantages and disadvantages of using credit.
It's not hard to identify with both the advantages and disadvantages. Sometimes you really need something before payday, but how skilled are you at judging what is necessary and what is a discretionary expense? It might be hard to say no to a cup of Dutch when you could pay it off on payday...but will your credit score suffer if you can't pay your car payment?
It's not hard to identify with both the advantages and disadvantages. Sometimes you really need something before payday, but how skilled are you at judging what is necessary and what is a discretionary expense? It might be hard to say no to a cup of Dutch when you could pay it off on payday...but will your credit score suffer if you can't pay your car payment?
When lenders look at your credit there are 3 Cs they consider:
When lenders look at your credit there are 3 Cs they consider:
#1: Character:
#1: Character:
If you've used credit in the past, have you been reliable in paying it back? Do you have people that you can use as character references? How long have you worked at your present job? Do you pay your bills on time? How long have you lived at your current address?
If you've used credit in the past, have you been reliable in paying it back? Do you have people that you can use as character references? How long have you worked at your present job? Do you pay your bills on time? How long have you lived at your current address?
#2: Capital
#2: Capital
Do you have any valuable assets (Savings account, property, or investments) that could be used to repay the debt if you lose your income?
Do you have any valuable assets (Savings account, property, or investments) that could be used to repay the debt if you lose your income?
#3: Capacity:
#3: Capacity:
Do you have a steady job? How many other loan payments do you have? Do you have children that are dependent on your income for their livelihood? What are you living expenses (house, water, gas, power, phone, food)?
Do you have a steady job? How many other loan payments do you have? Do you have children that are dependent on your income for their livelihood? What are you living expenses (house, water, gas, power, phone, food)?
Discussion #008 Have you seen others in your life make mistakes when using credit? Explain the scenario and how you will make different choices when you have the opportunity to build your credit.
Discussion #008 Have you seen others in your life make mistakes when using credit? Explain the scenario and how you will make different choices when you have the opportunity to build your credit.
For complete information on this topic please visit:
For complete information on this topic please visit:
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