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Professional Confessional

A blog providing tips and resources for life after college

Is Having Credit Good?


Here’s why:

1. Allows you to borrow money.  If you have a credit (good) history, then you can borrow money for a car loan or mortgage for a house.  If you borrow money, pay it by the due date.  Or you will decrease your credit score/rating.

2. Determines loan amount and interest rate.  The better your credit score the more you can borrow (good and bad) and the lower your interest rate.

Here’s how:

1.Pay your bills on-time.  Any bills your have (e.g., phone or electricity), pay them early or by the due date. 

2. Obtain at least 1 credit card.  Perhaps, apply for a credit card at store you frequent such as Target.  Only make minimal purchases in order to easily make on-time payments without paying late fees (interest rates).  This allows you to build your credit history. I’m not telling you to go out today and get a credit card.  You have to consider your personal financial situation.

If you don’t pay your bills or credit card in a timely manner, then you will negatively effect your credit rating.  Late payments account for 35% of your credit score.  See below for additional percentages account for your credit score:

What is a credit score anyway?

So, you may read or hear the words…credit report, score, or FICO (Fair Isaac Corporation) score. Your credit score is based on your credit history, such as how much money you owe (30%), how long you’ve owed it (15%), how many new accounts you have (10%), how often you miss or are late with payments (35%), and what type of credit accounts you have (10%). Changes in any of those factors will cause your score to go up or down.

Here’s where:

1. Check your credit history and learn more about credit with Annualcreditreport.com.

You can obtain a free annual report.  Oftentimes, it’s a good idea to check to ensure identity theft or fraudulent charges have not been acquired in your name.  Equifax, Transunion, and Experian are different credit agencies to check your credit score.


Test your save or splurge knowledge and win “dessert on us” with a Brynn’t gift card!

How to participate:

1. Register at CashCourse.

2. Participate in the quiz of the week.

Quizzes are located at the bottom of the home page under Resources.

Quiz schedule:  April 25-May 1: What’s Your Credit Score IQ?

Category: Professional Development

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