How to Establish Good Credit

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Good Credit: What to Know

One of the first things young adults need to know when they’re just starting out on the road to the rest of their life, is how important it is to build and maintain a good credit rating. In the world we live in today, your rating is the basis of how you are treated by big businesses.

It doesn’t matter if it’s renting an apartment, applying for insurance, a car loan, or even a credit card. Your score is consistently taken into consideration. Sometimes when applying for a new job they may review your score as a reflection of your personal integrity.

What to do When You Can’t Pay

Everyone realizes that life isn’t always perfect. There may be a time when some people are not able to meet their obligations temporarily. Try to give a reasonable explanation and evidence that you are actively attempting to rectify the situation. Financial institutions and other large companies understand and view this as a favorable indication of your veracity.

Get a Credit Card

One of the easiest ways to begin to establish a good score is by applying for a credit card. There are multiple choices of cards and features that will fit your lifestyle. When applying for your card you will most likely be given a lower credit limit. You may also consider a secured card, whereby you place a deposit that reflects your credit limit. This is common for people with little credit history. It’s after you’ve proven your creditworthiness, your limit will gradually be raised.

Before you apply for your first credit card or any card, you should ask these questions.

  • Does it have a low introductory offer?
  • If it has a low introductory offer, how long does it last?
  • Is the low introductory offer for transferred balances, new charges, or does it apply to both?
  • After the introductory low interest rate, what is the regular interest rate?
  • Does this card charge an annual fee?
  • What is the amount of the late fee?
  • Does this card have an over-the-limit fee?

These are just elementary questions to ask when you are applying for a new card and want to compare. But before you sign on that dotted line, like with anything new, be sure to read the fine print. How you handle this card and meet your obligation is important. Your adherence to the terms and conditions will reflect on your rating.

About Pivot Credit Repair

Pivot Credit Repair helps individuals gain the financial clarity and credit repair assistance they need to achieve their goals. Get in touch for a free assessment today.

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