Credit Establishment 101 by:Jakob Jelling
There will come a day when you need credit. You may want to buy a home or a car and your credit rating will become very important to help make these dreams come true. One of the first things you will need to learn is the basic principle of money management, especially the ability to repay your creditors on time within the 30-day grace period they establish for you. Most people secure credit cards as the first way to establish credit in High School or College. Upon getting the credit card, usually a low spending limit, the ability to repay the card in an orderly fashion will help you establish a positive credit rating with the major repositories.
How your score is recorded
Upon making your monthly payments to the Credit Card Company or bank, your information is electronically transmitted to a credit-reporting agency. Trans Union, Equifax and Experian are the three major credit agencies. Once you have made your payments consistently your rating will rise accordingly. Once your rating has hit 650 or better, your mailbox will become flooded with attractive offers for credit cards and loans. People will want to give you the world because you can pay your bills in a timely manner.
What else is affected with the credit rating?
You may be surprised but if you do not act financially responsible, it can prevent you from getting a job, renting an apartment or even opening a bank account. The fact of the matter is that your credit rating is very important in today's society. Your ability to keep it up to date by monitoring it is crucial. Once a year you can pull a free credit report from each agency. Check the report for accuracy, should it be reporting errors contact them immediately to resolve the issue. Some people might think a simple phone call can fix everything. That couldn't be farther from the truth, repairing damaged credit takes time and only you can do it. Once you file a claim, stick with it and make sure it gets resolved. Once a correction has been made you will receive notification or an amended report from the agency showing the change. Your credit report has much more at stake for you in the present and in the future, watch it closely.
By Jakob Jelling
http://www.cashbazar.com
About the author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate. Home loan applications made easy by:Jakob Jelling Lower Your Credit Card Interest Rate Now! by:Jakob Jelling Refinancing your home - How and why? by:Jakob Jelling Financial Services Marketing Insights: A Marketing Compass by:Jay Nagdeman Student Home Purchase Plan by:John Carle & Sharon Gregresh Nine Questions To Ask Yourself Before You Head To The Office Party by:Lydia Ramsey FOCUS on Your Business Program. Power of FOCUS. by:Raymond Johnsen Slash Your Phone Bill in Half Now! by:Reginal Smith A Great Way to Do PR by:Robert A. Kelly What to do When You receive a Bad Check by:Stephen Bucaro How Long Should You Hang Onto Your Home-Based Business Dream? by:Vishal P. Rao Ten Ways to Manage a Rapidly Growing Business by:Alvah Parker Celebrating Successes: The Power Of Compliments by:Bill Lampton Ph.D.