Congratulations high school seniors…many of you may now be tried as an adult. If you have reached the age of 18 (or older), you also have the opportunity to start building your credit. Why is credit important? Because I say so…and because creditors and lenders say so too. Your credit determines your purchasing power to buy items like a car, a student loan, and maybe a house one day. Credit also may affect your ability to get or keep a job. What do lenders look at? Your credit rating should how well you repay your debts—whether you are a good credit risk or a deadbeat. When lenders are deciding whether to extend credit, they look at how well you pay your bills, your credit limit versus your high balance (as on a credit card), and your income. Build your credit from your budget up. Make a budget. Stick to it. Pay your bills on time every time – from rent to credit card bills and all other bills, make sure you have paid by the due date. By having a budget, you should know what bills are coming and when. By sticking to your budget, you should be able to […]
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