Why a good credit score matters

1. Why a good credit score matters • Lower interest rates • Credit cards, car loans, mortgage • Lower auto insurance premiums • Rent an apartment • Avoid larger security deposit or paying additional months’ rent up front • Better cell phone and cable rates • Employers may also be interested in your credit score • Shows you are dependable

2. “Establishing a credit score, however, can be a bit of a Catch-22. You build a credit history primarily by taking out loans, but you can't take out loans without a credit history. So how do you establish credit for the first time?” -Rob Berger

3. Ways to build Credit • Credit card • Student Credit Card • Secured Credit Card • Put security deposit down ($200-$500) and after some time, approx 1 year, get security deposit back, raise credit limit, and can get a regular credit card • Apply for additional cards through department stores or for something specific like gas and pay in full each month • Car loans • Paying utilities in your name—if don’t pay on time major hit to credit score

4. What makes up your FICO Score? • 35% payment history. • 30% amounts owed. • 15% length of credit history. • 10% new credit. • 10% types of credit used.

5. Advice • Start building credit as soon as you can and feel ready to • Build responsibility by using a debit card first although debit cards do not do much to build credit • If you carry a balance on your card keep it at or below 30% of your credit limit • Leave accounts open in good standing even if you do not use the card anymore • Adds to length of credit history • Don’t apply for too much credit b/c this lowers your score • Keep track of your credit score

6. Sourceshttp://money.msn.com/credit-rating/article.aspx?post=45196da9-83b9-4229-8435-14415c64fe16http://www.cbsnews.com/news/5-ways-to-build-a-good-credit-score-from-scratch/Sourceshttp://money.msn.com/credit-rating/article.aspx?post=45196da9-83b9-4229-8435-14415c64fe16http://www.cbsnews.com/news/5-ways-to-build-a-good-credit-score-from-scratch/