Today is Get Smart About Credit Day, an annual event that celebrates financial wellness and credit education. Understanding credit is an important aspect of daily life and can contribute to positive financial health and comfort. Check out these tips to help you build good credit.
1. You WILL have to pay back every penny spent using a credit card
So before you book that trip to Maui, make sure you have the means to eventually pay it back.
2. Credit Cards can help build your credit score
Having a high credit score is important because it shows your creditworthiness. A high credit score shows that you can pay your bills on time and in turn can equate to lower interest rates on car loans, school loans, and many other different loans—saving you money in the future!
3. Be aware of the minimum payment
It can be really tempting to pay just the minimum payment on your credit card bill, especially if it’s a high amount. However, by doing so you’ll have to pay interest, causing you to pay more in the long run.
4. Pay on time
Late payments can damage your credit score. While it can be easy to lower your credit score, it can be difficult to bring it back up.
5. To 700 and beyond!
With all this talk about credit scores, you might be wondering what’s considered a “good” credit score. Credit experts encourage that you maintain a score of 700—but higher is definitely always better!