Why is it important to have good credit?
Good credit is important when figuring out how well you can handle money, especially when doing business with other companies. It is also a part of the approval process for a transaction.
It helps the managers of the company you are doing business with decide whether or not to take you up on your offer to do business with them. A good credit score makes them more likely to choose that option.
How do I start to build a credit history?
One way to start building credit is to open a charge account at a department store or gas station and pay off the full balance every month. That way, you'll not only avoid interest charges, but you'll also build up a good credit score.
If you are not a legal U.S. citizen, it is very hard to build a credit history in the United States. But you could ask a close friend or family member to put you on their account as a signer or to co-sign a loan with you. So, both of you will build up a credit history.
What is a credit reporting agency?
A credit bureau is a company that collects and shares information about credit and personal information with the biggest lenders in the state. This includes all the information about your accounts, like the balance, any loans or fees, and the way you pay. The credit bureau keeps track of whether you pay on time, sometimes pay late, always pay late, don't pay back a loan, or go bankrupt.
What is a report on your credit?
A credit report is a legal document that comes from one of the credit bureaus. It shows your whole credit history, including accounts with banks, credit unions, companies, and creditors.
What's the best way to get a copy of my credit report?
You can get a copy of your credit report from your bank or another credit company. To make sure you are who you say you are, you will be asked for the following information:
- Full name
- Address
- Birth date
- Old place of residence
- Number on driver's licence
How often do I need to look at my credit report?
You should check your credit report once a year, or maybe every six months. This will help keep identity theft and other types of fraud from happening to you.
Even if it's been less than a year since you last checked, you should check your credit report again if you want to apply for a loan or if your wallet was lost or stolen.
