Day 29: Build your bad credit!
Greetings Everyone!
Everyone knows that good credit will open many doors for you. To be able to get the things that you want with a low interest rate should be your #1 goal in life.
The game of FICO and the other businesses that profit off of a Credit Scoring System, is to prove your credit worthiness.
The more credit worthy you are, the better your interest rate will be when given credit. The lower the APR, the less money that you pay on borrowed credit or money.
So naturally, you would want to have excellent credit. But, the problem for most people is the economic makeup and bad learning that has been handed down in life. You may not be able to point out all the different situations that have contributed to your credit score, but you can start to learn what the credit scoring system uses to create the score.
Schools are not teaching this; and most parents are not talking about this with their kids.
It's no wonder that the average 20+ year old gets into serious credit card issues when they go off to college, or begin to start a family.
Nowadays, it's hundreds of companies offering to Build your credit, Consolidate your bills, help you with bankruptcy, or give you credit at some of the highest interest rates ever!
So what do you do?
Everyone knows that good credit will open many doors for you. To be able to get the things that you want with a low interest rate should be your #1 goal in life.
The game of FICO and the other businesses that profit off of a Credit Scoring System, is to prove your credit worthiness.
The more credit worthy you are, the better your interest rate will be when given credit. The lower the APR, the less money that you pay on borrowed credit or money.
So naturally, you would want to have excellent credit. But, the problem for most people is the economic makeup and bad learning that has been handed down in life. You may not be able to point out all the different situations that have contributed to your credit score, but you can start to learn what the credit scoring system uses to create the score.
Schools are not teaching this; and most parents are not talking about this with their kids.
It's no wonder that the average 20+ year old gets into serious credit card issues when they go off to college, or begin to start a family.
Nowadays, it's hundreds of companies offering to Build your credit, Consolidate your bills, help you with bankruptcy, or give you credit at some of the highest interest rates ever!
So what do you do?
- Do you care about your credit?
- Do you want great credit?
- Do you use cash only?
- Do you know your FICO score?
Think about these question and see which one pertains to you.
If you're not into credit cards and like to pay cash for everything, Good for you! Your'e the type of person that would probably like Dave Ramsey. I listen to him all the time, and he is a great money Mentor.
If you would like to learn more about your credit, and what you can do to improve it, there are millions of websites that offer this information. Hopefully this post will spark an interest in you to begin learning more about it.
Credit scores range from 350-800. The median good credit score is between 650-730. Most credit cards will offer you a card with those scores. Of course, the higher your score and credit practices, the lower the interest rate will be. Also, most cards offer free FICO scores. Unfortunately, they may be about a month behind, or different variations of the FICO score. What I mean by that is FICO has FICO 1, FICO 2, FICO 7...You get the drift. They all mean something different.
Creditkarma.com is a well know website that offers a credit score and a copy of your credit report, but it is not FICO. You will notice that the scores are completely different. You can use CreditKarma to gauge where you're credit score is currently, but do not use it as gospel. FICO is the main credit scoring system that most companies use.
If you need to build your credit, there are millions of offers to choose from. A simple one is
This company will offer to loan you an amount on paper, and take payments from you on a monthly bases. They take the money and put it in an interest bearing account, and return it to you in about 18 months. They will send the payment information to the three credit bureaus, which in return, will help you build credit as well as a little savings. If you have bad credit, I highly recommend this instead of trying to get a credit card.
I hope this sparks an interest in getting your credit in order, and talking to your kids about the importance of having good credit. The internet has everything you need to help you, so get started today! Start by getting a free copy of your credit report from all three Credit reporting agencies.
WWW. ANNUALCREDITREPORT.COM
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