Mastercard Share Secure Terms & Conditions

A credit report contains information about your credit history and the status of your credit accounts.

This information includes:

• How often you make your payments on time
• How much credit you have
• How much credit you have available
• How much credit you are using
• Whether a debt or bill collector is collecting on money you owe

It can also contain public records such as liens, judgments, and bankruptcies that provide insight into your financial status and obligations.  Lenders use these reports to help them determine if they will loan you money, what interest rates they will offer you, or whether you continue to meet the terms of the account.

A credit score is a number that represents credit worthiness.  For many years, credit scores were only associated with high-ticket items such as a car or a home.  Today, credit scores can affect your ability to get a good rate on commodities such as car insurance or cell phones, and can even determine whether or not you are hired for a job or get a promotion.

Ninety percent of lenders and creditors use the FICO score, which ranges from 300 to 850.  The higher the score, the better it is for the consumer, because a high credit score can translate into a low interest rate.

Building your credit is a process that doesn’t happen overnight, but there are many things you can do to start building a positive credit history.

Timely Payments | One of the simplest ways to build your credit is to pay your bills on time.  Making timely payments shows that you are a responsible consumer.

Open a secured loan | A secured loan may be a good idea if you’re looking to build your credit.  With a secured loan, you borrow money against your savings account while still earning interest on the balance in the account.

Credit card accounts | Open a credit card and only use 30% or less of the limit.  Pay off the balance monthly.

Take out a small car loan | Apply for a small car loan and make a 10-20% down payment.  Be sure to make your monthly payments on time.

Let your accounts age | The longer you’ve had credit, the better it is for your credit score.  Leave your oldest accounts open since they help increase your credit age and build good credit.