What three-digit number has the most impact on your financial life? If you said your credit score you are correct. My parents always stressed the importance of credit from an early age. After I turned 18, I applied for a secure credit card from Wells Fargo, which I will be discussing more in detail in a few minutes. In this speech, I will be discussing what credit is, one way you can build credit, and the touch upon the importance of having credit. First I will explain what credit is. Next explain one efficient way to build credit. Finally, will touch upon the importance of an excellent credit Now let us begin with what is credit. Credit is what a lender uses to determine how well a person pays back the borrowed money. Credit is general viewed at 740 to 900 are excellent, 680 to 739 are very good, and 640 to 679 are fair and below 639 are poor. The five criteria used to determine your credit score are payment history, credit usage, length of credit history, credit application, credit accounts. According to the personal banker at Wells Fargo, the most important criteria that students should focus on are payment history, credit usage, length of credit history. Payment …show more content…
First, you can qualify for lower interest rate and monthly payments on purchased such as a house or a car. Even if you do not buy leasing a house or a car requires very good to excellent credit. For example, when I leased my car, I had to get my dad to co-sign because I did not have any credit at that time. In other words, the dealer did not trust me and wanted someone trustworthy and responsible. The same goes with renting a house. At the end of the day, credit shows true financial independence and having excellent credit can get you what you want and save you a lot of money in the long run with the possibly of lower interest rates. Credit is a universal number that landlords, lenders, finance company and even an employer look at to determine your
In this country, there are three major credit bureaus: Experian, Equifax and Trans Union. They offer information to lenders about a person�s credit score. The lower your credit score, the less likely you are to get credit. Each credit report comes with �score reason codes� to explain why your credit score is where it is.
Not Checking Your Score: You should never forget to check your credit score. In addition to providing you a way to instil some financial discipline in yourself, it also helps to find any problems and potential frauds. Such issues will continue to occur if not detected in time. You should check your credit score at least once or twice a year to make sure that it matches with your credit history and you are aware of all loans in your
Organization: Topical pattern. Audience analysis: The audiences are raging from 20-21, and are currently residential students at Liberty University. They are all from South Korea, but each has different backgrounds. Topic: Nursing can be used to show and share the love of God.
There must be a way to get out. I feel so alone, and lost. It’s dark in here and I don’t know where to go.
One of the main pros of rent to own is that you don't need to have any credit or good credit to do it. This can be a way to build up some credit in fact and show that you can be responsible when it comes to paying what you owe. This method of obtaining things you really need such as a laptop for school or something you want such as a big screen TV means you don't have to
Your credit score is one of your most important financial attributes. Fortunately for those who are unsatisfied with their credit rating, there are plenty of options available. Improving your score is an attainable goal that everyone should aim for, even those who are content with their credit rating.
Credit score is based on credit report, which is a record of borrowing and repayment history. Credit score indicates creditworthiness to potential lenders, banks, landlords, insurance companies, etc. Everyone knows that the higher the credit score the better it is. Make the wise move and be consistence with the following key points to improve your credit score.
This article describes the disadvantages and advantages of buying or renting your home. It describes advantages of buying such as taxes and appreciation of the home. However, coming up with a down payment may be hard for many people. Renters may have less cost and more flexibility on when and where they can move to.
Ritchie, Patrick. "Credit: The Foundation of Borrowing." In The Credit Road Map: A Practical Guide for Navigating Your Way to Good Credit, 21-23. Tempe, AZ: Success Road Map Press L.L.C., 2006.
General Purpose:To inform about eating disorders Specific Purpose: To inform my audience about eating disorders and the different types. Central Idea: Eating disorders are very common and they cause many people to go through hard things. They can affect anyone and once you develop an eating disorder you will have it for the rest of your life it doesn't just go away.
You have to avoid missing payment. You have to also avoid paying less than you usually pay. There are other things that might not affect your score directly but can actually affect how your lenders think about your credit worthiness. It could be taking out cash advances or investing your credit on ventures that could bring future money stress. Examples include using your credit for a divorce attorney, in a pawnshop, etc.
Those who are having a bad credit score, unfortunately they will have to face hassles and issues in obtaining a loan. Banks and financial institutions will always judge the repayment ability and the attitude through an assessment of credit score. Financial institutions draw the conclusion that it will not be possible for the person to pay regular fixed installments. Urgent expenses and insufficient monetary resource can further lead to loan application rejection.
Here a long credit history is an advantage. The easiest solution to succeed that is to have a credit card for as long as possible and avoid opening too many new accounts in a short period of time. 10% - Credit Diversification Try to use as different types of credit as possible. Financial diversification is an important part of a good credit score. People who have demonstrated good payment habits with credit cards, student loans, car loans, and mortgage loans tend to have higher credit scores.
In a survey that was conducted by me at work out of 30 coworkers 18 were the victims of some form of identity theft.
There are many people who will claim that everyone needs a credit card, you just need to learn to use it responsibly. They will say there are many good reasons to have a credit card. They are safer than cash, or you need to have at least one for a financial emergency. You also need them to help build your credit rating, and some will tell you that a credit card is mandatory for certain purchases. There are even those who will tell you that credit cards, when used properly, are financially profitable. Let’s look at each one of these reasons for needing a credit card.