The golden rule is to use the credit within your means; because the credit is money and interest to pay and it’s not cash in your pocket. If you understand it and that you use your credit accordingly within your means, the credit becomes a handy financial tool. It allows you to move forward with projects or purchases that you want to make without paying right away.
Gain the confidence of lenders
Your credit capacity is based on one thing: confidence that financial institutions have in your creditworthiness. And this trust, it is up to you to deserve it, and maintain it. You’re more responsible in how you use credit, the more you’ll get score from major creditors.
What happens when you get scores? Say that when it comes time to apply for funding for a project or a purchase that is close to your heart, it makes awfully your business to have a good credit record.
What is a credit report?
Your credit report is your debtor portrait, or borrower. As soon as you have a credit card or you make payments to repay a loan or pay an account, you open your credit report.
Your file is used to determine if you are a good or bad payer. It contains three types of information relevant to your topic.
• General information: name, age, address, current and previous employment
• Business information: everything that is related to your past credit applications, credit cards, your payments to pay your balances and your accounts, late payments, etc…
• Legal Info (recorded in public records) everything about legal situations that you experienced, if applicable: seizure, bankruptcy, lawsuit, etc…
Information on Privacy
The institution or company to which you send a request for credit (loan, card or line of credit, mortgage) or service (electricity, telephone, Internet, etc.) the company Inquires about your credit rating with agencies evaluation. She knows your financial capacity before you extend credit or provide a service.
No need to tell you that things are much less complicated with a good record than with a bad one.
You wonder what you should do to build your history and, therefore, your credit score. A simple method is to ask for a credit card to use it and pay your balances on time, in full. To begin, we recommend you take a card with a small limit, history to tame the thing; it is among the ways to build credit.
If, as a precaution, you do not have a credit card, you may face some difficulties to obtain financing in time. Because a virgin credit report, even if it is preferable to a bad one, it does not say much about your creditworthiness. So the ways to build credit includes getting a credit card.
So you may need a co-signer with a good credit score for you to borrow. Your endorser would have to pay for if you were not able to do so.
Did you know that you can check your credit report?
Yes, you can have access to your credit file. We recommend that you check your credit report one time per year to make sure it is current. The information in your credit report is used to assess your creditworthiness and inform lenders and retailers.