Credit is an agreement between a borrower and a lender, where the borrower agrees to repay the loan with interest at a later date. It also refers to a person's ability to repay their debts. Your credit report and scores tell lenders if you have good or bad credit. Credit plays a crucial role in various aspects of our lives, from purchasing a car to securing a mortgage.
Unfortunately, not everyone starts with a high credit score of 800+. It takes effort and time to build. Here are some tips to get you started on your credit-building journey:
Starting early is the best way to establish a solid financial foundation before reaching milestones like buying your first car, applying for a mortgage, renting an apartment, or getting a loan. Good credit opens doors to lower interest rates and better loan terms, leading to lower monthly payments. Here are some key points to keep in mind:
Building credit can seem overwhelming, but these simple tips can help you get started:
Building credit is a journey that takes time, patience, and consistent effort. By starting early, staying financially responsible, and seeking guidance when needed, you can pave the way to a strong credit profile.
Learn more about how you can manage your credit score and spending within digital banking!