Credit is king.
While many countries do not have a credit scoring system, in the United States credit is king. Taking care of your credit allows access to loans for big-ticket items such as homes and vehicles. Credit checks are also often required to rent apartments.
You may have a down payment for a home, but without good credit, it will be difficult to find a lender to help finance your purchase or an apartment development willing to grant a lease.
Christian Widhalm, CEO at Bloom Credit, recently spoke with The Street about how to help manage your credit.
“One of the biggest things for a credit score is a positive repayment history,” he continued. “You have to start demonstrating how you are becoming more positive regarding your repayment history, which will take time.”
Repairing credit due to lengthy mismanagement of funds takes patience and consistency. However, Widhalm believes establishing credit can be a much easier process. Having possession of a checking account is the key.
“You can actually report 24 months of your checking account history almost overnight,” he explained. “Because you can establish tradelines on past payments that ultimately can help impact your credit score much more quickly.”
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Source: Black Enterprise
