We’ve gotta give credit where it’s due: credit is a big deal. Getting a high score is how you impress lenders, landlords, and sometimes future bosses. We Skimm’d the info you need to build – and keep – good credit.
It’s a marathon, not a sprint. We break down what’s in a score. And how to get a good one.
When you go to court to legally divorce your debt. It’s not always a clean break: the details can stay on your credit report for up to 10 years. And you could have to sell your home or car to pay back your lenders.
Not a regular card, but a cool card. The kind without a spending limit or interest rate. Because you have to pay your balance in full…every single month. Good for people who like rewards and have a great credit score.
A place you don’t want to go. After not making a debt payment for a certain amount of time, your lender may ask another agency to step in and make you pay. Go-to tactics include calling a lot and mailing ‘pay now’ letters.
Interest that’s added to money that’s already gained interest. It keeps your balance growing and growing. Your best friend when you’re saving and investing and your worst enemy when you’re racking up debt.
A red flag you can wave when you think something shady (*cough* identity theft) may be going on. It tells lenders looking at your credit report to go the extra mile to verify you are who you say you are before approving new credit.
A higher interest rate your lender can charge you for doing something bad. Like paying late or spending over your credit limit. Nice lenders usually let you get back to your regularly scheduled rate after you pay on time for six months.
Looks like a regular credit card and acts like a regular credit card. But requires a cash security deposit unlike a regular credit card. Typically for people who’ve had a rocky relationship with credit in the past.