The basics
Credit (noun): The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
Put simply, credit is financial trust. Financial institutions want to be sure they’re paid back for the money they lend, determining your financial trust by looking at your credit report – the record of all your credit history.
Credit scores range from 300-850. The higher the score, the more trust you have built, and the more eligible you will be to borrow money in the future. To build credit, you need to prove you have the funds and discipline needed to consistently make your payments on time.
The importance of credit scores
Your credit score can have a big impact on your financial future. Once you start building your score, you’ll want to take steps every day to ensure that your credit is growing safely – all while avoiding the mistakes that can damage it.
Your credit score can determine your:
- Eligibility to obtain loans and credit
- Interest rates (how much you pay to have the loan)
- Employment opportunities
- Eligibility for an apartment or home
- Insurance coverage
Building Credit?
We can help you achieve a better credit profile. Let’s talk about what we can do together.
