Maintain your old Siemens Hipath system

Beginners Guide to Credit

I remember back when I was 18 and completely oblivious to the concept of credit. It seems like eons ago! If only I had known then what I know now about credit. Hopefully, this short guide will be able to give you some ideas on how you can build a solid credit rating... even if you have to do it from scratch!!

Everyone has to start somewhere, whether you are 18 like I was, or even 30, there is no better time than the present to start thinking about your financial future. Chances are, your credit score will come into to play during some point down your financial-life road. And when that time comes, you had better have some concept of credit and how it can help you, or else you might find yourself unable to qualify for much of anything.

First of all, if you are starting from scratch, don't worry! It will take some time, but eventually you will be able to qualify for the bigger things like a car or a mortgage. The first thing you need to do is establish your credit. The easiest way to do this is to get a credit card issued by your bank. Chances are, the bank already knows you and won't have as much of a problem with issuing a card to one of it's current clients. If you don't already have a checking account, get one! There are a ton of great banks out there that issue free checking accounts with check cards to new customers. But take note! A check card or ATM card isn't the same as a credit card! With these you are simply withdrawing the money that you already have in your checking or other accounts. A credit card is very different...

A credit card is actually a right given to you by your lender to borrow a set amount of money from them. You might be shocked to find out that the only card you can get when you are first starting out comes with an outrageous interest rate. Sometimes as high as 15-25%. But don't fret... as long as you pay off your balance every month, those interest rates will be easier to swallow, and you will eventually to be able to qualify for a card with a much lower rate.

A note for the beginner: In order to have a good credit score for life, you need to develop a personal goal... never, EVER make a late payment for anything. I was lucky when I first started building credit to have a mother that ruthlessly instilled in me a healthy respect for the power of paying bills on time. It not only builds your credit quickly, but makes you a good steward of your finances. There were times when I owed money for a credit card bill, and I was so deathly afraid that the creditor would take the bill to collections and ding my credit, that I stooped to borrowing money, just to make sure my credit record stayed clean! I know that seems a little crazy... but trust me, it is extremely important to pay all of your bills on time, even if you have to go out of your way to do it. You will appreciate your diligence down the road.

A warning for the Beginner: Be careful with your spending! It may seem exciting when you first get a credit card with a $1,000 limit, but it can be very dangerous. It is very tempting to pretend that your credit card represents money that you have in the bank. My advice, don't ever spend more than you can pay off in that same month. And if you aren't able to pay off your entire balance in a month, pay more than the minimum requirement. This will help give you a slight boost.

Moving on... After you have had your bank issued credit card for a while, and feel that you can handle the responsibility, try moving onto one of the major credit card companies. There are many out there. Try to find one with the lowest interest rate and no annual fee. Don't apply for too many at once! Each time you apply for a C.C., the company will run your credit to see if you will qualify, and to see what your spending limit should be. One or two should do just fine. If you did well in handling your bank C.C., you should have no problem qualifying. A company I like is Providian; mostly because they give you a brief snapshot of what your credit score is each month, and as a beginner, you will want to start paying attention to what your score is and how it can be effected by your different spending habits.

After a while of responsible spending with your new credit cards, your score will really start to move. You'll notice multiple credit card offers from many companies mysteriously start showing up in the mail. Your score will probably be somewhere around 600-650. This isn't a bad credit score, but it could be better. Most likely, it is around this range because of your lack of credit history. As you can see in our Credit overview section, length of credit history accounts for around 15% of of your overall score.

Another factor that comes into play with your score is the type of credit you have been issued; approx.10% of your score relies on it. You can only build so much credit with your credit cards. Eventually lenders will like to see some other forms of proof that you are able to be responsible with monies borrowed. This is where a personal loan, or a car loan can be helpful. Lenders view this as a different kind of borrowing than from the credit card companies. In terms of building your credit, these types of loans are great.

After that, you should see a significant leap in your credit score, and should be able to move onto bigger and better things like a home mortgage loan! Just always make sure you remember the fundamentals: always pay your bills on time, and never spend beyond your means. With these tips in mind, you will be on your way to making sound financial decisions for life.

Justin Smith is the President of the Christian Real Estate Network -- http://www.Hismove.com

In The News:

South Korea new coronavirus front as 100 fresh cases confirmed
Fri, 21 Feb 2020 12:50:00 +0000
South Korea has become the newest front for the coronavirus outbreak outside China as 100 new cases were confirmed on Friday.

Russia showing a 'lack of humanity' in Syria, says UK's UN ambassador
Fri, 21 Feb 2020 10:09:00 +0000
Britain's UN ambassador Karen Pierce has accused Russia of a "lack of humanity" in Syria, as the UN revealed that more than half of the nearly million people displaced in Idlib province by the escalating conflict are children.

£150k raised to send bullied schoolboy to Disneyland
Fri, 21 Feb 2020 13:03:00 +0000
A comedian has raised more than $200,000 (£154,000) after setting up a fundraising page to send a nine-year-old boy who is being bullied because of his dwarfism to Disneyland.

Countdown to Taliban-US truce in bid to end 18-year Afghan war
Fri, 21 Feb 2020 15:52:00 +0000
The end of 18 years of war in Afghanistan could be in sight as the countdown to signing a peace agreement between the Taliban and the United States will begin on Friday.

Bollywood releases 'first film with gay man as lead character'
Fri, 21 Feb 2020 16:24:00 +0000
A rom-com touted as Bollywood's first film to feature a gay male lead character has been released in cinemas.



tikatoshop.it

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

Credit Repair Services vs. Do-It-Yourself Credit Repair

Millions of Americans suffer because of bad credit these days,... Read More

Which Credit Bureau Should I Use To Check My Credit Report?

There are three main credit bureaus in the United States;... Read More

Credit and Loan Help for Mortgage Loans

Mortgage loans are some of the most difficult loans to... Read More

5 Killer Steps to avoid Credit Card SCAMS!

In August, 2004, the Federal Trade Commission issued their findings... Read More

Credit Cards: How To Use Them

Credit cards can be a very quick way of getting... Read More

How To Eliminate Credit Card Debt

There is almost nothing more troublesome than having too much... Read More

How To Establish Great Credit

Building a good credit history is important. If you have... Read More

Identity Theft - Dont Think You Are Immune

As identity theft becomes more prevalent, the need to regularly... Read More

Credit Reports: Find out why you have been refused Credit.

You may already have 2 or more credit cards in... Read More

What Are The Most Common Credit Card Mistakes?

Now in a world with so many easy to get... Read More

Good Credit Is a Necessity for Everyday Living

Most of us want a good credit report to obtain... Read More

Fun with Credit Cards

For those of us who know how to use them... Read More

Understanding Credit Report Score

Understanding credit report scores is important when you see your... Read More

Taking Control of Your Credit History

Your credit history is important; in fact, in this day... Read More

10 Ways To Boost Your Credit Score

1. Deleting Errors in 48 HoursThis is the absolute fastest... Read More

10 Tips To Prevent Credit Card Fraud

Imagine opening your credit card statement one morning and discovering... Read More

What is Credit Repair and How Can It Help You?

There are millions of consumer credit reports on file from... Read More

Common Credit Score Myths

A lot of credit score myths about fico score ratings... Read More

The Next Person With Credit Problems Got Their First Credit Card Today!

One of the focus areas of my information is the... Read More

Tackling Bad Credit

The first time I heard the term credit history was... Read More

Credit Worthiness

Credit Worthiness is an important business and personal asset each... Read More

5 Surefire Ways To Eliminate Credit Card Debt

Do you have enormous credit card debt? You are certainly... Read More

Addressing Bad Credit Card Debt

Spending HabitsSo you've just got your credit card. The first... Read More

4 Steps You Can Take If Your Online Credit Card Application Has Been Refused

Help! I've Been Turned DownYou received an envelope in the... Read More

How To Protect Yourself Against Credit Card Fraud

In the high tech world of today, credit card fraud... Read More