8 Facts About Building Credit that Will Blow Your Mind

1
The Credit Score King
2
8 Facts About Building Credit Thatll Blow Your
Mind
Building credit can be confusing and scary,
especially if youre trying to do it
independently. There are plenty of resources
available to you online and in print, but theres
no substitute for getting advice from someone who
has already been there and done that. Here are
eight facts about building credit that will make
your hair stand on end and blow your mind
simultaneously!
3
1 t's Start With Some Defining Terms

• Although its called credit, a credit score isnt
  a type of loan. Instead, your credit score is a
  number thats generated based on information in
  your credit report and used to determine how
  likely you are to repay an obligation. Most
  lenders will want to see at least a good credit
  score before they extend any financial
  assistance, so its important to know exactly
  what these scores mean. Here are some facts about
  building credit that might blow your mind.
• 2 What is your FICO Score?
• The one-number score lenders use to decide
  whether youre a reasonable credit risk. If
  youve ever applied for a credit card, a car
  loan, or a mortgage, your lender checked your
  FICO Score before making a decision. If you want
  to know what it is, heres how to find out. Each
  of us has an individual FICO Score that can range
  from 300 to 850. In general, a score in the high
  700s and above will get you lower interest rates
  on loanswhich makes sense because banks dont
  like lending money to people who wont pay them
  back. But if your number is too low (below 620),
  you might have trouble securing any credit at
  all, and you might pay more money over time.
• 3 Understand Why Bad Debt is Bad
• Before you start worrying about whether youll
  ever find a credit card company willing to issue
  you a credit card, make sure you understand why
  bad debt is bad. Most people think its because
  of interest rates and feesand thats part of
  itbut if your goal is to build up your credit
  score, understanding how and why things like late
  payments and high-balance utilization damage your
  score will help you stay on track.

4
4 Good Debt is Good

• More often than not, debt has a bad rap its
  seen as something that should be avoided. And
  while many forms of debt are indeed detrimental
  to your financial health (excessive credit card
  debt is never recommended), there are some
  instances in which good debt can help you build
  your credit. For example, some student loans
  allow you to opt for an income-based repayment
  plan, which will automatically adjust your
  monthly payments, so theyre more affordable
  based on your salary. If youre trying to build
  your credit and own a car, auto loans and
  mortgages (interest rates may vary) also count
  toward your scoreand taking out these types of
  debt can be highly beneficial if done
  responsibly.
• 5 Be Aware of Lenders' Tricks
• Keep in mind that whenever youre dealing with a
  lender, particularly when looking to take out a
  loan, be it for business or personal purposes,
  theres a good chance theyll try to pull some
  tricks on you. Check your credit report regularly
  and be aware of any inconsistencies. If you
  believe there is an error in your statement, send
  a dispute letter to each of the three major
  credit reporting agencies Equifax, Experian, and
  TransUnion. They must investigate if you file a
  dispute within 60 days of noticing a discrepancy.

5
6 Understand How Banks See Your Applications

• When you apply for a credit card, you may assume
  that your application is being taken seriously.
  However, if youre new to credit or have a bad
  payment history on your report, banks may see
  your applications as attempts to game their
  system and build up their profits. Some people
  claim that too many credit card applications in a
  short period hurt their scores. Since it can be
  challenging to know what each bank considers an
  excessive number of applications in a short
  amount of time, consider using your wallet well
  instead of relying solely on cards. Get only what
  you need at any given pointand then pay them off
  quicklyinstead of trying to rack up credit with
  multiple cards. You might find that it makes more
  sense to use one well-managed card rather than
  several poorly managed ones.
• 7 Know Which Factors, Count Most
• Many factors can influence your credit score, but
  there are two main credit-scoring models in use
  today. The first is FICO, which is used to
  determine scores for about 90 of lending
  decisions. FICO scores range from 300 to 850. A
  higher score means youre likely to pay back your
  debts on time, so lenders will give you a lower
  interest rate or better terms on whatever theyre
  loaning you money.
• 8 Get Approved Today!
• Its time to build credit. While that may seem
  like a daunting task, it doesnt have to be. You
  can start building credit in several ways, but a
  secured credit card is one of the best ways.
  Secured cards are available to anyonewhether you
  have bad credit or no credit at alland there are
  some out there that offer great rewards and
  low-interest rates. Compare secured cards for
  yourself below!

6
Contact Us

• Address - 18930 HWY 18 STE 101 Apple Valley CA
  92307
• Email - info_at_thecreditscoreking.com
• Phone - [phone]
• Website - https//thecreditscoreking.com/
• Blog - https//thecreditscoreking.com/8-facts-abou
  t-building-credit-thatll-blow-your-mind/