October 9, 2017

What is Credit and How Does it Work?

What is Credit?What is credit and how does it affect you and your new life in the U.S.? For those who want to buy and finance a car, start a new job, or rent an apartment, it can be difficult to get good rates or approval. Learning to understand how credit works and why it exists is the first step to building your credit score.

Why is a Credit Score Important? In the United States, the credit scoring system you will hear about most is the FICO score, a score used by the major credit agencies to rate your creditworthiness. Your FICO score will be between 300 and 850 with a higher score being better. When it comes to your credit, lenders may sometimes refer to it in terms of Credit Level or Credit Quality such as Poor, Fair/Average, Good or Excellent with each category referring to a range of FICO scores. The link below contains questions and answers that you may have about the importance of credit In the USA.

How to Build your Credit ScoreBuilding credit and establishing a credit score can seem like an impossible task when starting from zero, especially for newcomers. Use these 9 steps and tips can to boost your credit score.

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