Why It is Essential to Your Financial Health

Credit influences every aspect of your financial life; From renting an apartment to an employer determining whether to hire you.

Your credit score is a three-digit number that summarizes you as a borrower. The higher your credit score, the more trustworthy you are. It enables lenders to quickly do a credit check and determine if they are dealing with a trustworthy person, or an individual who does not pay back their debt on time. Credit scores range between 300 and 850. Anything above 700 is considered excellent. Climbing out from under bad credit is a tough situation, but it is doable. To get started, you will need to build your credit back up.

If you do not qualify for a credit card you can increase your creditworthiness by becoming an authorized user on someone else’s credit card. You can also be a cosigner on someone else’s loan.

Having bad credit is like having debt, you cannot climb out of it overnight. Be patient with yourself and start small.