{"id":6676,"date":"2014-01-09T23:04:45","date_gmt":"2013-10-16T23:22:43","guid":{"rendered":"https:\/\/creditrepairnewyork.net\/?p=6676"},"modified":"2014-01-09T23:04:45","modified_gmt":"2014-01-09T23:04:45","slug":"how-can-i-build-good-credit","status":"publish","type":"post","link":"https:\/\/creditrepairnewyork.net\/how-can-i-build-good-credit\/","title":{"rendered":"How Can I Build Good Credit?"},"content":{"rendered":"

 <\/p>\n

How Can I Build Good Credit?<\/h1>\n

Hello, and welcome to www.CreditRepairNewYork.net
\nMy name is James Halliwell, and we have a question today
\nfrom Caryn in Tennessee regarding
\nbuilding good credit<\/a>.<\/p>\n

\"how

how can i build good credit<\/p><\/div>\n

And it’s a good news,bad news story.
\nShe says, I’m 21 and have no debt.
\nThat’s the good news.
\nBut I also have no credit.
\nThat’s the bad news.
\nSo she wants to know,how can I go about
\nbuilding good credit?
\nWell, first Caryn,congratulations on being 21
\nand still being debt-free.
\nI can’t tell you how many people I’ve talked to at a
\nsimilar age to yours that have already begun to bury
\nthemselves in debt.
\nSo I think it’s great that you’ve avoided that, and
\nhaven’t done it.
\nThat being said, having credit is important.<\/p>\n

If you ask yourself, how can i build good credit<\/strong><\/span>, read below to find out more.<\/h2>\n

So let’s look at how to go about building
\nit the right way.
\nTo me, I think a great place to start is to understand how
\ncredit is measured.
\nIt’s all about your credit score.
\nSo let’s look at what goes into the credit score to help
\nyou understand what actions you should take and what
\nactions you should try to avoid.
\nThere are five major components that typically make
\nup one’s credit score.
\nThe first component, and it’s the biggest one, is payment
\nhistory, or how well you manage the
\ncredit you’ve been given.
\nAs you can see, it accounts for about 35%
\nof the overall score.
\nThe second component that goes into a credit score is the
\nlength of that history, or how long you’ve had the credit.
\nAnd you can see that represents
\nabout 15% of the total.
\n\"buildingThe next piece is how much you owe as a percentage of the
\ncredit that’s available to you.
\nAs you can see here, that accounts for about 30%.
\nFinally, 10% of your score is determined by the types of
\ncredit that you have, and 10% comes from credit applications
\nor inquiries.
\nSo with these components as a backdrop, let’s look at some
\nof the things you can do that will help you get a good
\ncredit score, and some of the things you could do
\nthat would hurt you.
\nOne of the first helpful actions you can
\ntake is to get started.
\nIt’s called credit history for a reason.
\nRemember, this makes up about 15% percent of
\nyour overall score.
\nThe next helpful action you could take would be to make
\ntimely payments.
\nThe idea here is once you get this going, you don’t want to
\nmess it up.
\nSo always, always, always pay on time, or even
\nearly if you can.
\nI tell people if you need to,set up an automatic payment so
\nthat you don’t ever have to think about it.
\nYou just don’t ever want to be late.
\nRemember, how you manage this credit that you’ve been given
\nmakes up about 35% of the overall score.
\nThe final helpful behavior that I’d like to address today
\nis to limit your use of the credit.
\nWhy?
\nBecause the amount you owe, as you can see, represents about
\n30% of your credit score.
\nCoincidentally, that’s abou tthe same upper percentage
\nlimit of your available creditt hat you should use.
\nSo as an example, if you had a credit card with $1,000 limit
\non it, and you needed to borrow something, or needed to
\nbuy something and use that credit card, if you need to
\ncarry the balance, you should try to keep it below $300.
\nJust because a company gives credit to you or makes credit
\navailable, doesn’t mean you have to use it.
\nSo now that we’ve looked at some of the helpful actions
\nthat you can take to help your credit, let’s look at some of
\nthe things that could hurt it, and things you
\nshould try to avoid.
\nFirst would be missing or making payments late.
\nJust as making timely payments positively impacts your
\noverall score, doing the opposite, making payments
\nlate, is going to negatively affect your overall score.
\nThe next hurtful thing that you can try to avoid is– but
\nit’s not an issue for you yet, Caryn–
\nis avoid closing older,unused cards.
\nWhy?
\nBecause if you close an older card that you no longer use,
\nit can negatively impact your score in two ways.
\nFirst, it’s going to remove established history from your
\ncredit record.
\n\"buildingAnd second, it can cause your ratio of
\nutilized credit to increase.
\nRemember, we’re trying to keep that below 30%.
\nThe final hurtful action Iwant to discuss today is
\nhaving too much debt.
\nThe bottom line here is don’t overdo it.
\nRemember, everything that you buy and use credit to pay for,
\nwhether on a credit card or sometype of loan, has to be
\npaid off eventually.
\nFinally, Caryn, when it comes to credit and debt.
\nPlease heed this warning.
\nBe careful.
\nAlways treat credit with the respect that such a valuable
\nand dangerous tool demands.
\nYou want to establish budgets,you want to save regularly,
\nand you only want to use credit when
\nit’s absolutely necessary.
\nThanks again for the question.
\nI hope this explanation gives you a better understanding of<\/p>\n

How Can I Build Good Credit<\/strong><\/span> <\/a>and how this all works, and I wish you all the best.<\/h3>\n","protected":false},"excerpt":{"rendered":"

  How Can I Build Good Credit? Hello, and welcome to www.CreditRepairNewYork.net My name is James Halliwell, and we have a question today from Caryn in Tennessee regarding building good credit. And it’s a good news,bad news story. She says, I’m 21 and have no debt. That’s the good news. But I also have no… Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[40,41],"_links":{"self":[{"href":"https:\/\/creditrepairnewyork.net\/wp-json\/wp\/v2\/posts\/6676"}],"collection":[{"href":"https:\/\/creditrepairnewyork.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/creditrepairnewyork.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/creditrepairnewyork.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/creditrepairnewyork.net\/wp-json\/wp\/v2\/comments?post=6676"}],"version-history":[{"count":3,"href":"https:\/\/creditrepairnewyork.net\/wp-json\/wp\/v2\/posts\/6676\/revisions"}],"predecessor-version":[{"id":6682,"href":"https:\/\/creditrepairnewyork.net\/wp-json\/wp\/v2\/posts\/6676\/revisions\/6682"}],"wp:attachment":[{"href":"https:\/\/creditrepairnewyork.net\/wp-json\/wp\/v2\/media?parent=6676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/creditrepairnewyork.net\/wp-json\/wp\/v2\/categories?post=6676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/creditrepairnewyork.net\/wp-json\/wp\/v2\/tags?post=6676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}