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A Crash Course Guide To The World Of
Credit Scores
A Thread:
Credit ScoresA Thread:
Now what is a Credit Score you may ask?
Credit scores can be used by banks to determine whether or not they are willing to give you a loan, as well as the scale of the loan that they give you.
Bad score: no loan
Good score: 10k
Great score: 30k
Credit Score you may ask?Credit scores can be used by banks to determine whether or not they are willing to give you a loan, as well as the scale of the loan that they give you.
Bad score: no loan
Good score: 10k
Great score: 30k
Your best bet is to always stay above a 700
Credit scores are also taken into considerations when leasing a apartment/house/car
A person isn't gonna want to lease to a someone who has a history of not paying back money on time, or at all. A credit score will help in determining this.
A person isn't gonna want to lease to a someone who has a history of not paying back money on time, or at all. A credit score will help in determining this.
So how do you build a Credit Score
The easiest way is with a credit card
Now what is aCredit Card
A credit card is ready to go money that you can spend at any time. THIS IS NOT FREE MONEY. Think of it as tiny loans for purchases, so you will need to pay it back.
Credit ScoreThe easiest way is with a credit card
Now what is a
Credit CardA credit card is ready to go money that you can spend at any time. THIS IS NOT FREE MONEY. Think of it as tiny loans for purchases, so you will need to pay it back.
And paying it back late, or not at all, can have negative effects on your credit score
a bad credit score can ruin your life
But that seems scary
It's not really, you just need to be careful and remember this:
if you can barely afford something you can't afford it
a bad credit score can ruin your lifeBut that seems scary
It's not really, you just need to be careful and remember this:
if you can barely afford something you can't afford it
So how long does it take to build a
Credit Score
It takes 6 months to form a credit score after getting a credit card.
Okay so how do I pay it off?
You can link your credit card to your personal bank and pay off your purchases that way
Credit ScoreIt takes 6 months to form a credit score after getting a credit card.
Okay so how do I pay it off?
You can link your credit card to your personal bank and pay off your purchases that way
So your basically paying for your credit card with you debit card
What's aDebit Card
This is the card with your personnel money on it. So whenever you get a paycheck and it goes to your bank account. A debit card gives you access to that money.
What's a
Debit CardThis is the card with your personnel money on it. So whenever you get a paycheck and it goes to your bank account. A debit card gives you access to that money.
But wait if I have a Debit Card why do I need a Credit Card
Like I mentioned earlier you need to have a credit score to take out a loan and to get an apartment/house/car
So what if I take out aloan how do I pay its back?
I'll use student loans as an example
Debit Card why do I need a Credit CardLike I mentioned earlier you need to have a credit score to take out a loan and to get an apartment/house/car
So what if I take out a
loan how do I pay its back?I'll use student loans as an example
You hear people talking about having 150k on student loans, now most people will not be able to pay that off in on go, so they pay it back in installments
So maybe you pay 500 every month for the next 25 years until you eventually pay it off.
So maybe you pay 500 every month for the next 25 years until you eventually pay it off.
But I'm 15 how does this affect me?
Well what you can do, is ask your parents to take out a credit card in your name so they can start building you a healthy credit score, so it's already there when you are ready to move out and enter the world ofAdulting
15 how does this affect me?Well what you can do, is ask your parents to take out a credit card in your name so they can start building you a healthy credit score, so it's already there when you are ready to move out and enter the world of
Adulting
Thank you and good luck
good luck
