Family Credit Counseling - Understanding Credit And Credit ScoresEstablishing Credit Creating a credit line can feel tricky at times especially when you have no one who can co-sign for you. The best way to get your credit started is to take out a starter loan with a small local loan office. Keep the money that you receive from the starter loan hid away in a jar or other special place. Whatever you do, do not place this money in your wallet or purse as this can make it tempting to spend elsewhere. Avoid making your payments early just make them on time. Do not pay off the loan early. The longer you are making on-time payments on the loan, the better your credit score will become. Another great way to get your credit started is to go through a family credit counseling center. They can show you how to get started and stay on the right path. What Affects My Credit? Many different factors can affect your credit score. Here is a list to help you stay on the right track . . . · Late Payments · Missed Payments · Foreclosures · Liens · Prolonged unemployment · Multiple requests for new credit · Bankruptcy · Using over 80 percent of your available credit line
What Does my Score Mean? Credit scores can be confusing especially when you are considering getting a loan. Many people try to avoid the experience all together from fear of being turned down. When you know what your score means ahead of time, it can help you feel more centered and prepared for walking into a loan office. Over 750 – Excellent 720 or Higher – Great 660 to 720 – Acceptable 620 to 660 – Grey Area 620 or Less – High Risk
Maintaining a High Credit Score Maintain your credit by avoiding overloading your cards with things you don’t really need. While the feeling of being able to purchase things you might not have typically been able to purchase in the past can be intoxicating it is important that you think ahead. You do not want to be struggling to pay for that one day of shopping pleasure for years to come. Use your cards for emergencies only or only use your card when you know you can quickly and comfortably pay off the balance. Family credit counseling is also a great way to keep your credit score tiptop.
When Your Credit is Failing If you have accumulated more debt than you can comfortably pay off, don’t worry. The best way to handle a situation is head on. When you are willing to talk with your creditors, it shows that you care about making your payments and take your commitment to them seriously. If you have a month that you must make a late payment, let your creditor know when you plan to make the payment. This will often prevent the creditor from putting the late payment on your credit score. Family credit counseling is also a great way to make your way out of debt. They can help you make a plan for getting and staying out of debt.
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