No one wants their past credit mistakes and poor credit to hold them back. That’s why we’ve created a series of educational videos to help everyone better understand and improve their finances. We’re dedicated to helping you learn the what, why, and how of credit. Click the video to the right to get started.
What is Credit and Why Does it Matter?
What are your credit choices?
You may already know what a loan is, but do you know about the different types? By understanding the basic differences between popular loan options you can make an educated decision when it comes to finding the right financial solution for you. Learn the differences between secured, unsecured, and line of credit loans, as well as payday and installment loans.
The True Cost of Credit
The true cost of credit is determined by three categories: principal, interest rate, and loan term. Learn how all three work together to determine how much you are actually paying on a loan. While the principal is the original amount of borrowed money, it determines the amount of interest you pay as well. The higher the interest rate the more money you’ll pay over the course of your loan term.
Understanding Your Credit Score
Your credit score is often used by lenders to asses your likelihood of maintaining regular payment schedules and repaying the loan in full within the term. Learn how payment history, length of credit history, debt to credit ratio, types of credit, and how often you apply for credit all work together to determine your credit score. Those with good credit scores have an easier time when it comes to getting a loan. Understanding your score can help you get the credit you need!
Use Credit to Build Credit
Learn the four easy steps to help you get started on the path to good credit. First, build a credit history by signing up for a specialty card. Next, use your card for priority purchases like gas, groceries, and bills. Don’t spend more than 30% of your credit. And finally, make your payments on time. Remember, building credit takes time! By following these steps you’ll show lenders you’re responsible with credit.
How to Use Credit Cards Wisely
Using your credit card wisely can help you build good credit. Learn how to determine which credit card is right for you and how it can help you instead of hurt you financially. By remembering to limit the number of credit cards you apply for, learning how to choose the right card for your needs, and making on-time payments, you can use your credit card wisely.