Do you wish you were more informed about your finances when getting into adulthood? Sure, I a bet there are a lot of things you wish your parents would have taught you that you might have had to learn the hard way. If your goal is get your FICO credit score to the highest it can be, you are going to have to do your research because quite frankly you can’t just dig into your parent’s past and find out all that they did. If you have kids or plan on having kids, there are Important Credit Lessons that it would be wise to share with your kids so they don’t run into the same problems or issues you did.
One of the Important Credit Lessons you can first try to teach your kids is to make sure they make their best effort to pay off their credit card balances every month. When you are only paying the minimum or a small fraction of what you owe, you are paying a lot of money in interest to the credit card company. If you enjoy having as much money in your account as possible, you shouldn’t be doing this. I know they have just started to put how long paying the minimum will take to pay off your debts, and normally it is 3 years or more! There is no reason to pay $900 for a $500 computer.
Another rather Important Credit Lessons is to try and fight for every interest rate reduction if possible. Negotiating with your finances from credit cards, to cars, or houses, even fractions of percents reduced can save you a lot in the long run. In a world where everything is up for negotiation, it is in your best interest to at least ask! For example, if you have a $100,000 mortgage at 4% and can reduce it to $3.825% you can save yourself $10 per month!
When you are addressed with the question of how you should pay for a purchase, either cash or credit, you should always choose credit if possible. When you have the ability to put a purchase on credit you can rest assured knowing that your purchase is protected from fraud. Proving fraud with a cash or even a debit card purchase is a significantly harder proposition. Using credit cards wisely are Important Credit Lessons.
What you may not know and what is the last of the Important Credit Lessons is the act of building your credit and how to do it properly. Building up your credit and having a higher credit score can help you significantly down the road in life when you are able to get the best possible interest rates. If you have open lines of credit that you pay off every month and some installment debt that you repay over the years shows great credit worthiness. Also not utilizing more than 30% of your available credit is key to keeping your credit score high and the best possible rates coming in.
If you feel you could use some help with your credit, please feel free to visit or if you are ready for a loan you can visit www.loanconsultants.org to apply. Also, if you ahev any questions please feel free to call me at 888-900-1020 or email at firstname.lastname@example.org.