Credit is better than Gold

If You Know Better You Do Better

Credit is so important because the higher the score the more trustworthy you seem to be in the eyes of financial institutions. In some instances credit is more important than money. It's all good to be liquid but some companies require good credit to even consider doing business with you. It's never to late to build or rebuild your credit but the earlier you realize the importance of it the better off you'll be.

Credit is part of your financial power. It helps you to get the things you need now, like a loan for a car or a credit card, based on your promise to pay later. Working to improve your credit helps ensure you'll qualify for loans when you need them.

Credit leads to an increase in spending, thus increasing income levels in the economy. This in turn leads to higher GDP (gross domestic product) and thereby faster productivity growth. If credit is used to purchase productive resources, it helps in economic growth and adds to income.

Building credit can be tricky. If you donโ€™t have a credit history, itโ€™s hard to get a loan, a credit card or even an apartment.

Ways to Build Credit:

i. Secured Credit Card

ii. Credit Builder Loan

iii. Secured Loan with Authorized Co-signer

iv. Pay Your Bills on Time

Practice Good Credit Habits:

Make 100% of your payments on time, not only with credit accounts but also with other accounts, such as utility bills. Bills that go unpaid may be sold to a collection agency, which will seriously hurt your credit.

If you use credit cards, keep your credit utilization low โ€” utilization is the percentage of your credit limit you use. We recommend keeping your credit utilization below 30% on all cards.

Avoid applying for multiple credit accounts close together; applications for credit can cause a small, temporary drop in your score. Multiple applications can cause significant damage. The O.G.C.C.  recommends spacing applications by about six months.

Keep credit card accounts open. Unless you have a compelling reason to close an account, consider keeping it open.  Closing an account can hurt your credit utilization and reduce your average account age.

Check Your Credit Score and Reports:

A credit report is a record of how youโ€™ve used credit in the past. Your credit scores predict how youโ€™ll handle credit in the future, using the information in your credit reports. Youโ€™ll want to monitor both to watch for errors and to see your credit-building efforts pay off.

I hope this helps everyone who reads this. I love everybody and want as many people to avoid the mistakes I made.