Teaching a Teen About Credit #1 – Introduction

For many people, especially adults, the importance and principles of your credit score is a valuable lesson to have, and one that can cost you so much more than just money. But to teach this lesson to teens can be a huge impact on their financial futures. First, lets start with a the basics and what your number can do for you. We are all familiar with the importance of a high score when we are applying for a car loan, home loan or credit card. The application process for a home or car loan covers a check on your income, how much money you can put down on the purchase, and finally your score. Now a low number may not cost you a loan, but it will mean you have to pay higher finance charges and interest rates, and that will cost you hundreds of dollars a month. Along with that a good score can help you get a job as many companies check to make sure you are financially responsible and even help you rent a home.

There are also many easy ways to hurt your number, mainly by just missing payments and borrowing more money than you should. Other ways include; identity theft, law suits, foreclosure, bankruptcy, repossession and even checking it too many times or applying for financing. Avoiding these things can help you keep it up, and making payments on time will help you build it.

If you have hurt it the best way to fix it is to simply pay bills on time, however, if you need a faster solution you can do credit repair. A credit repair company can fix any score no matter the reason it was lowered and they do it fast, usually within weeks. Many people have found the process to be fast, effective, simple, and affordable. They do the work for you and walk you through the process so you know what is going on the entire time.

By David George

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