If you paid cash for everything, you would have no credit history.

If you have no credit history, you have no credit!

Use of credit is important to developing a great credit score. But you must follow the guidelines for keeping it great, which include:

1) keep your debt-to-credit ration under 30% per card

2) pay your bills on time, every time

3) pay every bill, every month it is due

4) don't ask for more credit than you can afford.

By following these guidelines, you will develop the best credit history possible.

Donna Perkins

And remember…as your income rises, more credit is appropriate. But be selective, and be sure not to overdo it.

Our professional Credit Concierges(tm) can help you with understanding these concepts. Call us today!

A good credit score is made from the history of charging and paying off credit cards and other debts. But paying off your credit cards each month is not the best way to develop a credit history. You need to owe a bit, and pay a bit to develop it.

Paying everything off each month is a good way to stay out of debt, but won't necessarily help your credit score.

By charging something and paying it off over time, a short time, you develop the kind of history that the bureaus want to see.  Remember, they benefit most as a business when you do not pay off your debts quickly.  The merchant makes money on interest and fees, and the bureaus make money selling lists to them.  The more you owe without going over the 30% rule (don't spend more than 30% of your available credit), the less the bureaus benefit.  When you owe more than 30%, they classify you as a "bad risk", and this is what makes them money.

Donna Perkins

To keep yourself in a good situation all around, charge something, then pay off your credit cards over 2-4 months.  Try to never charge something more than the 30% rule, pay your bills on time every time, pay early and pay a little more than the minimum required, and you'll develop the best possible credit history.

To learn more about this practice, contact us today!

This is a common misconception. There are several factors that must be considered when applying for new credit.

1) If you apply for several credit cards at once, each occurrence will result in an "inquiry" on your credit report. Each inquiry drops your score about 7 points. So it would be prudent to carefully review the offers you receive and select one or two to apply for.

The inquiry shows up on your report regardless of whether or not you are granted credit. But the bigger issue is that all of your creditors see the inquiries, and this indicates to them that their involvement with you may be at a higher risk. Because you are seeking additional credit lines, you may be expecting to spend more money on credit. This can put their balance with you at risk of default. Therefore, there may be negative consequences to frivolously applying for multiple cards within a short time span.

Donna Perkins

2) If you are trying to purchase a car, and go from dealership to dealership filling out applications at each one within a short time span, each application will result in an inquiry on your credit report. This is usually viewed by your creditors as only one inquiry for the purposes of risk assessment. The same holds true for real estate. However, you may need to apply to the credit bureaus to remove those extraneous inquiriies could take some time. You may need your Credit Concierge's(tm) help to make this happen.

Let us know how we can help you.

The place to start is at this website:  http://www.consumerfinance.gov/paying-for-college  On this website you will find questions and answers to better help you make informed decisions about the various student loan products out there. 

Should you opt for federal student loans, or go to a private source?  Find out on this next website:  http://www.consumerfinance.gov/paying-for-college/repay-student-debt/#Question-1

Choosing a loan that is right for you and your ability to repay it is crucial to your decision making process.  On this website, you will go through three steps that can help you pick the right one for you.  http://www.consumerfinance.gov/paying-for-college/choose-a-student-loan/#o1

So now you have the money, now what?  How do you manage that loan successfully?  Most of us never learned simple financial rules during our high school years, so how do we learn?  This website will provide those answers.  http://www.consumerfinance.gov/paying-for-college/manage-your-college-money/#o1

Donna Perkins

Keep the information on these websites.  Soon, the CFPB will have a financial tool that will allow you to compare loan offers!  Check back frequently to see when it is available.