Conquering Credit

Conquering Credit

Ms. Carrie Callan, gave a very well and indebt speech over credit scores and credit cards. There are two definitions of credit that Carrie covered. First it is the money that is loaned to you with the understanding that the money will be re-paid. Second it refers to your borrowing capacity, or how much lenders will let you borrow.

Carrie advised us, college students, to stay away from credit cards. Her reasoning was because students tend to use the full balance on the credit card, therefore causing the students to go into debt. Credit cards also charge very high interest rates on their cards to college students. Carrie told us that we should start small with a checking account and work up from there. Checking accounts are the easiest and quickest way to prove that one is credit-worthy.

Your credit history report is very important, it can determine weather you get a loan or not and how much it will be worth. Keeping good credit will benefit you and having bad credit will stick with you forever. It is recommended that you get your credit score at least once a year. Credit scores are three digit numbers ranging from 300-850. The higher the score is the better the credit will be. A good credit score is between 600 and 750.

To maintain good credit, pay the minimum balance due, at least, each month. Paying off your loans on time will increase your credit standing. Avoid using credit repair clinics, because they will show up on your credit report saying that you needed help to get out of debt and you couldn't manage your own credit cards.

The last thing Carrie touched on was how to help avoid identity theft. Identity theft has become more and more prevalent. To help protect ones self from being a victim of identity theft carefully review your credit card and bank account statements. If you discover any fraud, report it immediately. The biggest tip is