The Importance Of Credit

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I understood that I had credit because I am an authorized user with my mom visa card, but when I tried to pull a credit report and credit score it show that I wasn’t able to be found. However I have only been an authorized user for about three months. Nevertheless, I just use the visa card for gas. I don’t spend money, and wouldn't use a credit card that is why I don’t have one in my name. I like carrying cash because it’s easier to know how much I have to spend instead of just easily swiping a card. I will be prepared to get one when I’m stable financially. My plans to establish good credit is to apply for a capital one card in about two years when I have a steady income. I want to build up credit to purchase a home, land, and car. By …show more content…

You could end up with a high interest rate on loans and insurance premiums due to the fact that you are a risk or not may not be approved. It might be challenging to get an apartment in bigger cities and with that you may not get utility companies to provide services or they may have you pay a security deposit to guarantee you pay your bills on time. When you pay the minimum payment it is taking longer to pay down your debt and a larger interest charge. Debt collectors may show up, call, and send letters to get your attention. Banks will repossession your car and boats if you don’t pay three to five months, and foreclose on the house and business. Bankruptcy accounts will remain on your report for seven years, while a bad credit history is for seven years. These things are necessary to remember when improving your credit. Check your credit report regularly to monitor the information that is yours and exact to prevent fraud. Pay off your credit card balances and set a reminder to remember when it is due. Furthermore, make payments more than the minimal payment off of the credit card. Have self-discipline by not swiping your card on unnecessary expenses when you don’t have the money to pay it off. Your credit report will be seen by lenders, insurance companies, employers, utility companies. Lenders will view your score to determine the amount of loans, what interest rate, and what credit

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