Building credit, as the phrase suggests, is a process, not a single event. By steadily building and maintaining credit over time, you’re proving your financial trustworthiness to mortgage lenders and anyone else who might have reason to check your credit history.
Put simply, you build credit over the years by paying bills on time; taking on reasonable debts and demonstrating your ability to reliably pay them down and, eventually, off.
Your credit history is as unique as your fingerprint—no two are exactly alike. Complicating matters a little more, each person actually has three credit histories from the three credit bureaus, respectively. Also, some of the time-honored credit-building strategies from yesteryear have undergone some recent changes, so it’s important to keep up with events.
Different as our credit histories (and circumstances) may be, our credit reports and scores are the universal standard by which our personal finances are judged. Many big ticket items in life—buying a car, buying a home, even renting a nice apartment—are purchased either with long-term financing or a credit check—and the outcomes of both depend on your creditworthiness.
Building credit is crucial to living the lifestyle you want, so it’s important you know more.
With that in mind, here are some articles related to building credit from the Quizzle blog and beyond: