Credit Establishment 101

There will come a day when you need credit. You may want to buy a home or a car and your credit rating will become very important to help make these dreams come true. One of the first things you will need to learn is the basic principle of money management, especially the ability to repay your creditors on time within the 30-day grace period they establish for you. Most people secure credit cards as the first way to establish credit in High School or College. Upon getting the credit card, usually a low spending limit, the ability to repay the card in an orderly fashion will help you establish a positive credit rating with the major repositories.

How your score is recorded

Upon making your monthly payments to the Credit Card Company or bank, your information is electronically transmitted to a credit-reporting agency. Trans Union, Equifax and Experian are the three major credit agencies. Once you have made your payments consistently your rating will rise accordingly. Once your rating has hit 650 or better, your mailbox will become flooded with attractive offers for credit cards and loans. People will want to give you the world because you can pay your bills in a timely manner.

What else is affected with the credit rating?

You may be surprised but if you do not act financially responsible, it can prevent you from getting a job, renting an apartment or even opening a bank account. The fact of the matter is that your credit rating is very important in today's society. Your ability to keep it up to date by monitoring it is crucial. Once a year you can pull a free credit report from each agency. Check the report for accuracy, should it be reporting errors contact them immediately to resolve the issue. Some people might think a simple phone call can fix everything. That couldn't be farther from the truth, repairing damaged credit takes time and only you can do it. Once you file a claim, stick with it and make sure it gets resolved. Once a correction has been made you will receive notification or an amended report from the agency showing the change. Your credit report has much more at stake for you in the present and in the future, watch it closely.

About The Author

Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.

---

The Next Person With Credit Problems Got Their First Credit Card Today!

One of the focus areas of my information is the... Read More

Credit Repair Companies and Credit Counseling

Let's be crystal clear, right up front. Paying someone to... Read More

Know Your Credit Card Rights

When you apply for a credit card, the application that... Read More

SuperCharged Secret 3, Credit Card Utopia

TURBO-CHARGED KILLER RATE SAVING INFORMATION!Let's just take a brief moment... Read More

Credit Cards -- What You Should Know

There are a lot of questions about using credit cards.... Read More

Bounced Checks - Straight Talk On Dealing With Bad Checks (NSF)

A check can be considered bad if it is bogus... Read More

Bankruptcy Myths Busted

The average American knows very little about bankruptcy. Most people... Read More

Dont Fall For A Scheme When Trying To Rebuild Your Credit History

For people with a spotty credit history or bad credit,... Read More

Comprehending a Credit Report

Obtaining a credit report is an excellent way to begin... Read More

Credit Counseling Basics

Credit counseling is an option you might want to consider... Read More

Your Credit Score

Credit scores: all lenders use credit scores to determine interest... Read More

Common Credit Score Myths

A lot of credit score myths about fico score ratings... Read More

Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have... Read More

Choosing A New Credit Card

1. Choosing A new credit cardThere are many reasons for... Read More

How To Choose A Credit Card

Your credit score may just be a little number, but... Read More

Identity Theft ? Who Would Want Mine?

With all my bills who would possibly want my credit?... Read More

How To Eliminate Credit Card Debt

There is almost nothing more troublesome than having too much... Read More

Are You The Only One Using Your Name?

Identity theft has become an epidemic. Millions and millions of... Read More

Credit Cards: How To Use Them

Credit cards can be a very quick way of getting... Read More

Improving Your Credit Report

Even if you think you have a wonderful credit report,... Read More

How a Credit Card Can Be Your Friend

We have all heard countless stories of people over their... Read More

Cash Advance ? How Does It Work?

If you want a cash advance or a payday/paycheck loan,... Read More

Building A Credit Report Lenders Will Love You For

Will lenders really love you for having a good credit... Read More

Learn The Truth About Identity Theft

Identity theft is the fastest growing crime in America, according... Read More

The Credit Card Surprise That You Need to Look Out For

Companies that issue credit cards want to make a profit.... Read More

Credit Reports: Find out why you have been refused Credit.

You may already have 2 or more credit cards in... Read More

Bad Checks, Bounced Checks, & NSF Checks

Negotiable instruments like checks and drafts have become an indispensable... Read More

Five Credit Card Billing Problems and How to Fix Them

It goes without saying that your first and best defense... Read More

How A Prepaid Debit Card Can Help You Rebuild Your Credit

Consumers today are up to their eyeballs in debt. And... Read More

Defeating Credit Card Debt With Self Control

Credit card debt is a major social problem in some... Read More

Credit Help for Real Estate Financing: Credit Scores

When you buy real estate, lenders run all of the... Read More

What Is A FICO Score?

A credit score is most commonly known as a FICO... Read More

What is on Your Credit Report?

Your credit report is a very important piece of the... Read More