Tips To Establish Credit Wisely

1. Open and Manage a Checking Account

– This will demonstrate that you keep track of your expenses and watch your spending.
– It looks even better if you have direct deposit from your employer!

2. Make Regular Deposits to a Savings Account

– This will show that you are disciplined and you have an ability to save

3. Get a Credit Card with a Low Limit

– This will help you get started with credit
– Remember to pay off the card every month to avoid finance charges
– Limits exposure to fraud
– Helps you avoid impulse purchases

What happens when you make minimum payments on a credit card…

Interest rate: 18% Payment: $20 or 2% of balance

7 Things that can ruin your Credit Score

1. Filing for personal bankruptcy (Chapter 7 or 13)
2. Having your home foreclosed upon
3. Missing payments, or making late payments on a credit card or loan
4. Having an account “charged off” by a creditor or lender
5. Defaulting on a loan
6. Having a debt sent to a collection agency
7. Maxing out your credit card limits