Learn Your Credit
August 28, 2008
For many credit is a mystery often unveiled only when it becomes a problem. Attractive marketing and a modern society of instant gratification in consumption makes utilizing credit almost a necessity.
Being aware of how credit works and the best ways to establish and maintain yours is something everyone should have a basic understanding of.
The Basics of Credit
It is no secret that paying on time and only buying what you can afford are the main rules to keeping credit in the green. Unfortunately those simple rules don’t always apply in that order of importance in real life. Often credit is used as a supplement to help people get from paycheck to paycheck.
Getting to know the basics of your credit is essential to proper management of your credit history.
The most important factors of your credit in order of importance:
1. Payment history - including bankruptcy and judgments against you.
2. Amount owed - The total amount owed on credit, including auto loans, mortgages, etc.
3. Length of credit history - How long you have been using credit.
4. New credit - New credit applications (even at Target) can detract from a credit score and create problems, apply with caution. Read more