How To Utilize Debt To Boost Your Credit Score by: www.newhorizon.org
To build credit history, you must apply for credit. Credit history is establish by getting credit like personal loan, auto loan, home loan, credit card, etc. However why should you really make an effort to build your own credit history? You may need financial assistance from a bank or lending company. For example, when you’re prepared to purchase a house or car, you might need to loan if you can’t pay it in cash on your own.
Financing companies check credit file to find out if the borrower are able to do handling debt and repayment. Depending on your credit rating, you may be able to have a low rate on your loan. Alternatively, insufficient credit rating may cause your home loan application or car loan application to be turned down.
Apply For A Credit Card Account One method to build credit history is to apply for a credit card account. Once you get approved, use your account to improve your credit score. Remember that all your activities on that account will be reported to the credit agencies.
What makes up a credit score? The FICO score is computed according to 5 factors: payment history, credit utilization, length of credit history, types of accounts, and public records. Out of these factors, payment history comprises the biggest percentage (35%), followed by utilization of credit (30%).
FOR MORE INFORMATION READ http://www.newhorizon.org/credit-info/how-to-use-debt-to-improve-personal-credit/ GET A COPY OF YOUR CREDIT REPORT HERE http://www.newhorizon.org/Info/creditreports.htm