5 ways to build or rebuild your credit
credit score to help assess your reliability as a borrower, a high credit score can help you qualify for lower loan interest rates – saving you money over the course of your lifetime.
five steps can help:
Most adults already have a credit score that can be obtained by requesting a credit report and reviewing it carefully. You’re entitled to one free report each year and can request it at AnnualCreditReport.com. Chase Credit Journey® can also help you manage, monitor and protect your credit.
2 Apply for a credit card
If you’re starting to build credit, credit cards can speed up the process if used responsibly. Since credit card companies report activity to credit agencies, healthy activity can be a huge help
when it comes to building your credit. Student and other new-to-credit credit cards are a good option for those who are looking to build credit. Establishing a credit score and history requires having an account open for at least six months, so be patient and diligent about practicing healthy credit habits.
It’s expected for consumers to have some debt, but significant credit card debt and missed loan payments can have a major impact on your credit score. Pay bills on time and don’t overspend – maxing out a credit card or coming close to your limit will lower your score.
If you’re working to rebuild your credit, pay down debt as much as possible and catch up on pastdue bills. Also be careful about searching for new lines of credit while carrying significant debt
– lenders could see this as a risk and your score could drop.
Establishing a savings and checking account, renting an apartment and paying utility and other bills on time are among the activities that help show lenders you’re fiscally responsible. While these actions might not directly affect your credit score, they’re beneficial
practices lenders will notice when considering your application for a car loan, mortgage or other major life goal.
5 Help your children build credit
Opening checking and savings accounts for your children can help
teach them about everything from depositing your paycheck to easily paying your bills -- the basic building blocks of your financial infrastructure. You can also consider making your teenager an authorized user on your credit card account to assist them in establishing their own positive credit history. Take this approach if you consistently pay your credit card bill in full and on time, as late payments can also impact your child’s credit report, in addition to
your own.
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