Personal and Business Credit Should Be Taken Seriously

When you graduate high school you will start to get credit card offers. Resist the urge. Credit can be built up or ruined. If you have any plans of buying a house or starting a business, you need to know how to build your personal as well as how to build your business credit profile. Credit is a strange animal. Lenders from credit card agencies to banks want to extend you credit. Their goal is for them to make money with the interest you pay. As long as you make the minimum payments on a credit card, you will keep the credit card agency happy. However, you are just throwing away money doing that.

You should use credit wisely. If you need to charge something on a credit card, it should be no more than what you can pay off in the next 30 days. However, few people use credit cards like that. Plus, you should not use all of your available credit. This helps you to have a much higher credit score. Even if you have a good personal credit score, it may not be good enough to get any business credit. The higher your credit score the better. You get there by having some credit and paying things off. Pay off your loans on time. Never be late with a payment no matter what. Do not have a lot of inquiries or new accounts opened. Your should spread out your new accounts for credit over years not months.

Learning how to read your credit report is good too. You should know your credit score like you know your own address. You should register with a service to be able to check it whenever you want. This will help you keep up on things that are correct as well as being able to spot any errors in your credit report.

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