How to Build Credit

How to Repair and Increase Your Credit Score


What is my Credit Score?

There are many people in America that don’t understand what a credit score is and what it is used for. If you are one of these people, read on!

Credit scores determine your credit worthiness. If you ever want a loan or line of credit, you should be asking yourself, “What is my credit score?

If you do a little bit of research you can find out if you are in good or bad standing. Those are the basic two categories you can be in.

If you are in bad standing, you could possibly have a difficult time obtaining a loan to buy a new home or car. This is why it is so important for you to keep track of your credit score.

Before any company decides to give you a line of credit, they will look at your credit score. Your credit score will ultimately determine your buying power and your buying future. That is why asking, “What is my credit score?” is so essential.

If your credit is not that great and you have been put on the grey list, there is still hope in your future. This basically means that you have defaulted in a few payments and that you are a possible risk. You can eventually fix this with consecutive payments over a year’s period of time

However, if your credit score is so poor and you are on the black list, you will not be able to get any type of credit from anywhere in the world for five year. This is why it is so important for you to wonder what your credit score is and obtain it yearly.

You can obtain your credit report free of charge once a year from each the credit reporting agencies. You can visit annualcreditreport.com to request your copies.

There are also many accounts and financial advisors that can help you better understand your credit score and how it functions. They can also give you some great pointers on how to get and maintain a good score.

Asking, “What is my credit score?” is one of the most important questions you can ask for your financial life.


Quick Tip #1 - Be Smart With Credit

Don't purposely put yourself into debt just to build your credit score. It is better to be debt free and have no credit than to go and get a bunch of debt to have a score.


Quick Tip #2 - Bad Credit is Worse Than No Credit

If you want to build credit make sure to do it responsibly. Having a bunch of credit cards and getting behind will make your credit worse than never having a credit card at all.



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