Log in Kayla Gonzalez a year agoPosted a year ago. Direct link to Kayla Gonzalez 's post “How do we maintain our cr...” How do we maintain our credit score when it is already high? And how do we get a good credit score at a young age? • (5 votes) David Alexander a year agoPosted a year ago. Direct link to David Alexander's post “Those are two questions. ...” Those are two questions. Let's take them in order. "How do we get a good credit score at a young age?" Get a job and stay in i t. Get a credit card, use it and pay what you owe on time. Your credit score stands in for many things that don't involve money. It represents your dependability to employers and landlords. (14 votes) KADENP 5 months agoPosted 5 months ago. Direct link to KADENP's post “I don't have a question.” I don't have a question. • (7 votes) Galagas 5 months agoPosted 5 months ago. Direct link to Galagas's post “I don't have an answer to...” I don't have an answer to this question (6 votes) 2045687 a year agoPosted a year ago. Direct link to 2045687's post “Is there a Poor, Fair, Go...” Is there a Poor, Fair, Good, and Excellent on the credit score? • (2 votes) David Alexander a year agoPosted a year ago. Direct link to David Alexander's post “Your score is a number. ...” Your score is a number. (9 votes) Bman56 9 months agoPosted 9 months ago. Direct link to Bman56's post “Does anybody know what a ...” Does anybody know what a lease is? • (3 votes) David Alexander 9 months agoPosted 9 months ago. Direct link to David Alexander's post “A lease is a contract tha...” A lease is a contract that obligates you as a renter to a fixed schedule and length of time before things can be renegotiated. During the term of the lease, your rates cannot be increased. If you were simply renting, not leasing, things could change at the owner's whim. (7 votes) Sammy Apsel 5 months agoPosted 5 months ago. Direct link to Sammy Apsel's post “Is the credit score only ...” Is the credit score only available in America? Do other countries also use a credit score? • (4 votes) David Alexander 5 months agoPosted 5 months ago. Direct link to David Alexander's post “The entire credit score d...” The entire credit score discussion in these lessons is specific to the USA. Some other countries have similar systems, but a credit score from one nation does not transfer to another. (2 votes) Galagas 5 months agoPosted 5 months ago. Direct link to Galagas's post “Do I have to have a credi...” Do I have to have a credit card? I mean tbh credit cards sound so dumb, like wow you can spend money if you pay it back a few weeks later big whoop. I suppose it could be helpful in case you need to pay for something but can't afford it until you get your paycheck, but then what if you don't have enough money left in that paycheck for future payments or an emergency happens and you don't have enough saved up? Even if it can be helpful, I'd rarely want to use it, but don't credit cards cost money? Wouldn't I just be paying for something I barely use? It honestly sounds like it was made to trick people into debt. I have a feeling there is some way where you almost have to have a credit card, but I'd really like to live without one if possible. Even if it's my only way to get through a payment, I'd rather go without than go into unending debt. • (2 votes) David Alexander 5 months agoPosted 5 months ago. Direct link to David Alexander's post “1) You don't have to do a...” 1) You don't have to do anything you don't want, and that includes brushing your teeth. (5 votes) MatthewS a year agoPosted a year ago. Direct link to MatthewS's post “i was told credit matters...” i was told credit matters the most • (1 vote) David Alexander a year agoPosted a year ago. Direct link to David Alexander's post “Credit matters, because i...” Credit matters, because it is used by institutions that have power over things that do not involve money at all. If you wish to rent an apartment, someone may check your credit score, figuring that if you are responsible with credit, you won't wreck the apartment you want to use. (6 votes) J Chan 6 months agoPosted 6 months ago. Direct link to J Chan's post “I recall having been told...” I recall having been told to pay for things in full if possible and not to use a credit card. • (2 votes) William Wang 6 months agoPosted 6 months ago. Direct link to William Wang's post “A credit card should not ...” A credit card should not be used if you don't have the money and would be in debt to have something. Ideally, you would not pay a penny in interest on a credit card. Credit cards are helpful for your credit score but should only be used if you have the money and can use it responsibly. (3 votes) Kayla Gonzalez a year agoPosted a year ago. Direct link to Kayla Gonzalez 's post “What is a good bank to st...” What is a good bank to start your financial journey? • (2 votes) David Alexander a year agoPosted a year ago. Direct link to David Alexander's post “Your neighborhood bank mi...” Your neighborhood bank might be a friendlier place to start out. Unless you're going into business, it may be enough for everything you ever need. (3 votes) DakotaLaughery#SavedbyChrist 3 months agoPosted 3 months ago. Direct link to DakotaLaughery#SavedbyChrist's post “how old do you have to be...” how old do you have to be to have a credit score. • (2 votes) David Alexander 3 months agoPosted 3 months ago. Direct link to David Alexander's post “Let's imagine that the ba...” Let's imagine that the banks and credit unions near to where you live won't issue you a credit card until you are 18 (the age may be lower in some locales, but let's imagine this one). You may, even as young as 15 or 16, be employed. Staying with a single employer steadily, not changing jobs frequently, adds to your credit score. If you've committed a crime and been tried as an adult, the information about this goes into your credit score (juvenile infractions might not). So, Aim at 18. (3 votes)Want to join the conversation?
"How do we maintain our credit score when it is already high?"
Make your payments on time, whether that means paying off your balance every month or taking longer and paying interest, "On time" is the thing that maintains your score.
a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2021, the average FICO® Score☉ in the U.S. reached 714—an increase of four points from the previous year. Higher scores can make creditors more confident that you will repay your future debts as agreed. But creditors may also set their own definitions for what they consider to be good or bad credit scores when evaluating consumers for loans and credit cards.
2) Life became much more manageable for me when I learned how to use a credit card.
3) If you have faith that you'll be getting paid within the next several weeks, or steadily for the next year, then a Credit card is manageable, and it opens your options. But that takes faith, and if you live without that kind of faith, you'd better stay away from credit.
4) Go ahead and live without a credit card, but you'll find life a LOT more manageable with one of them in your pocket.
Similarly, some jobs for which you might apply might look at your credit score to see if you're likely to be a dependable employee.
Credit score "stands in for" other things. That's why it is important.
That's when the data that go into credit scores begins to accumulate.
But, before the age of 18, you may already be accumulating data for a credit score. For example, if you are "emancipated" from your parents before reaching the age of 18, you may be able to rent an apartment. Renting contributes to or detracts from your credit score depending on making your payments on time and not trashing the place.
Video transcript
- Your credit score is a measure, some would argue an imperfect measure, of how likely you are to pay for things on time. Let's say you were to take a loan. How likely are you to pay, make the payments on that loan? If you were to get alease on an apartment, how likely are you to pay rent on time? Now, there are three credit bureaus. They are TransUnion,Experian, and Equifax, and what happens is, is let's say that you have a credit card and as you pay that credit card, pay the balance, or pay the minimum payment on time, or you don't pay on time, that gets reported to these bureaus. These bureaus use an algorithm that comes from a company called FICO. It used to stand forFair Isaac Corporation, and that gives you a score, and each of the three bureaus will have a score between 300 and 850. If you have a score nearthe high end of that range, if you're in the high 700s or above, that is an excellent credit rating. People will give you loans. It will be easy for you to lease things, and not only when you get that loan, it will actually be ata lower interest rate. If your credit score is inthe 600 to low 700 range, that's decent, you're probably okay, although you might, in certain cases, have to pay a higher interest rate than the people with the excellent credit. And then if your creditscore is in the low range, which would be anywhere from300 to say the high 500s, you're going to havetrouble getting a loan, or in many cases getting a lease, or even if you do, you're going to have topay a higher interest rate. Now, the ways to get as higha credit rating as possible, is pay your bills on time, pay your rent on time, have a long credit history. It's good to have credit. So it's good to have a creditcard that has a high limit, but to use as little of that as possible. So good luck (laughs)with your credit scores.
