Kicking Assets

A young person's guide to personal finance

Tag: credit

How To Build A Good Credit Score

March 10, 2020 / / 0 Comments

Written by: Brianna

I know what you’re thinking, what the heck is a credit score? That is the same thing I thought going into this too. Here are some tips I found and thought I would share so we can all learn together! It’s good to find out how to start a credit score before adulthood comes into place, since you need a credit score for your future adult purchases. 

 

“A credit score is a statistical number that evaluates a consumer’s creditworthiness and is based on credit history: number of open accounts, total levels of debt, and repayment history. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner. A person’s credit score can range from 300 to 850; the higher the score, the more financially trustworthy a person is considered to be.”

 

Five tips to help you build a good credit score

  • Pay your bills on time
  • Use your credit card on important transactions only
  • Maintain your credit cards and pay it on time
  • Don’t open several credit cards at the same time, space it out. 
  • Write down what you purchase on your credit card to avoid overpaying

 

What Is Considered A Good Credit Score?

So, there is a scale it ranges from 300-850, a good credit score starts at around 690. So automatically anything higher than 690 would be considered the excellent which is where we need to aim at. 

Aiming to achieve a good credit score can teach us responsibility that we know how to pay on time and eventually it will prepare us for the real world.  

You can check out this free app called Nerd Wallet to find out if you have a good credit score…. For free?? Sign me up!

The benefits to having a good credit score

  • You will qualify for the best interest rates
  • You can get a more affordable price on apartment/house payments
  • Employers can also look at your credit score to see where you stand
  • Approval for loans from bank won’t be a problem
  • Pay less on car insurance 

 

Here are only a few of the benefits you gain from a good credit score. But did I also mention the bragging rights? Who doesn’t want to brag about having a good credit score when it’s something to be proud of? Start maintaining a good credit score now the earlier you do it the better!

 

Edited by Victoria

So You Want a Credit Card?

February 12, 2020 / / 0 Comments

Written by Kristina

You’ve reached the point in your life when you decide it’s time to get a credit card. But what exactly does that mean?

“The most important thing to understand about a credit card is that it DOES NOT increase your buying power as a consumer. If you can’t afford those shoes with cash, you can’t with a credit card. If you don’t think with this mentality, you run the risk of developing large amounts of debt.”

Applying for a credit card for the first time can be a bit intimidating and overwhelming. I know for me as a college student and young adult, I wasn’t really taught anything about the steps for applying for a credit card. Here, you’ll find a basic guide on what to expect when applying for a credit card and some helpful tips along the way.

Prepare Before Applying

It may seem as though you can jump into the credit card application process right away, but it isn’t that easy. Obtaining a credit card requires approval. Here are some tips to take into consideration before going straight to the application:

  • Make sure your finances are up-to-par
  • Make sure you are eligible
  • Do research on cards/banks that will best fit you
  • Don’t apply for the first card you see
  • Look at rates and benefits

Taking these tips into consideration before applying for your credit card may improve the chances of your approval.

Choosing the Right Credit Card

Going into it blindly, you may not know that there are different types of credit cards. This include unsecured credit cards, secured credit cards, cash back reward credit cards, and retail cards. These are only some of the options available.

  • Unsecured credit card: This is the most popular form of credit card which requires no security deposit to be approved.  When someone  says “credit card”, this is typically what they are referring to.
  • Secured credit card: This card is typically for those with no or damaged credit. This type of card requires a refundable deposit so it is less risky for the banks.
  • Cash back reward credit cards: This type of card offers a percentage of cash back on certain purchases.
  • Retail Cards: This card is specific to certain retailers (e.g. department store) and provides discounts or points for products. (This card is not recommended for entry level credit card holders).

To learn more about specific credit cards that may be good for credit, click here: https://wallethub.com/credit-cards/good-credit/ 

Submitting the Application

Now that you’ve done your research and prepared, you’re ready to submit your application. You have two options when it comes to filling out the application. You can either 1. Submit an online application, or 2. Fill out a hand-written application at your preferred location.

With filling out an online application, there is a possibility that you can see your approval or denial instantly. Once the application is done it is time to wait. And don’t worry if you don’t get approved the first time, many don’t! It may take several applications, but with the proper knowledge and effort, you’ll soon get there.

#finance #money #credit #application

 

Edited by Victoria

© 2024 Kicking Assets

Theme by Anders Noren — Up ↑

Skip to toolbar