Category Archives: Credit Score

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7 Easy Hacks to Quickly Boost Your Credit Score

Having a good credit score is important for everything from getting a good rate on a car loan to getting approval from a landlord for an apartment. But while it’s easy to let your score slip by missing a payment or suffering from identity theft, it can take years to build that number back up.

However, no matter what happened, here are some easy ways you can see your score jump at least 10-20 points starting next month, and continuing as long as you keep cleaning up the past and practicing responsible credit behavior.

Get Current on Payments Immediately

While last month’s missed payment may have caused a drop of 60-100 points (depending on how high your score was to begin with), making all of your payments on time this month — and keeping up with them — will likely help improve your score by 10-20 points in a couple months. Be aware that you would see steeper score drops (possibly over 100 points) if you paid late for two months or more, made late auto loan or mortgage payments, or paid more than one account late.

Keep your score improving by several points every month this year, until about a year of good payments has restored your credit.

Lower Your Credit Utilization

When you charge a card up to its credit limit, that’s called “high credit utilization.” If you don’t pay it all off by the next payment due date, you might notice your score drop 55-110 points.

A recent VantageScore report showed that reducing your credit card balance from 50% to 30% of the total credit available on that card can improve your score by up to 50 points. The lower your balances, and the lower your credit utilization, the better your credit score. If you must charge something and can’t pay it off by the next due date, spread the charges out across different card accounts to see a substantially lower drop of 30-80 points.

Don’t Close Old Credit Card Accounts

The point is to decrease your credit utilization, or the amount of credit used compared to the amount of credit extended to you. If you pay off a card balance, leave
the account open so the age of the account and its available credit limit can help increase your credit score a few points every month as time goes on. The VantageScore report showed that if you closed the account, your score could drop between 10 and 30 points, depending on your situation.

Negative marks may stay on your credit report for several years, but it’s possible to raise your score by 10-20 points starting this month.

Get Your Card Limits Increased

If you already have good credit (above 661) and low or no balances, it’s easy to decrease your credit utilization to get up to a 50-point bump. Just call up your existing credit card companies and ask for a credit limit increase. It’s a simpler, faster way to increase the amount of credit extended to you and decrease your credit utilization, without getting the 10- to 20-point “hard inquiry” credit ding from applying for another credit card you may not need.

Don’t Automatically Pay Off Collections

An account is in collections when the original creditor turns your account over to a collections agency after a certain amount of missed payments, a status that can remain on your credit report for up to seven years from the first missed payment. Paying off collections in full causes a score bump in some circumstances, but can be actually detrimental in others, according to credit expert John Ulzheimer.

Basically, if your debt is less than seven years old, you should explore options for paying it back. (That number varies by state and the type of debt.) That might mean paying in full. But you could also elect to settle a debt for much less than what is owed by working with the collections agency in exchange for a “paid” or zero-balance status report to the credit bureaus. If you have more than one collection on your credit report, paying off (or settling) the most recent one will help your credit score the most.

If a collections account is seven years old and has already fallen off your credit reports, it’s no longer affecting your credit score.

However, if a collections account is older than seven years and has already fallen off your credit reports, it’s no longer affecting your credit score. What’s more, you can no longer be sued over this debt, and you can legally tell collections agencies to stop calling you. Paying in full could put that debt back on your credit score, but reporting agencies could be slower to note that you actually paid it off. Even worse, making partial payments could not only put it back on your credit report, but also extend the statute of limitations for creditors to take legal action against you.

Some new credit scoring models from FICO and VantageScore do not view medical collections or paid collections negatively, so you will see the biggest bump in your credit scores from these scoring models. However, most lenders still use older FICO scoring models that penalize you for the old account, even when it’s paid off. And you can never know which scoring model a lender is using.

Become an Authorized User

Ask someone with excellent credit — like a trusted parent — to make you an authorized user on their credit card account. Then you can take advantage of that person’s higher credit limit and good credit history for an immediate credit bump the next month. You don’t even have to have the card; however, this hack works even better when you use the card in your name to make small purchases. When you pay it off completely every month before the due date, you’ll establish a positive payment history.

Just watch out, because if the cardholder has a negative account history or incident, that will affect your credit negatively, too.

Check Your Credit Reports for Errors

A serious payment or collection error on your credit report could hold you hostage to a low credit score for a long time. That’s why you should always check your credit reports for errors at least once per year at AnnualCreditReport.com. If you can’t identify a collection or negative mark as yours (the payment dates, account numbers, or creditor is wrong or not recognizable), dispute the error with the credit bureau. Also dispute the error with the collection agency, which has to prove the validity of the debt or remove the record from your credit report. Unfortunately, this process could take awhile because the credit bureaus have 30 days to respond by law.

The sooner you find and dispute an error, the easier it will be to resolve. Send your dispute by mail, along with any documentation showing you paid the bill or that the debt isn’t yours, and your score may increase substantially.

HT:  via Deal News

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Late Payment Removed From Your Credit Report (4 Ways)

Late payments can be a big deal, and they count significantly toward your credit score calculation. In Ryan Greeley experience, it’s really not that difficult to get late payments removed. Here are four methods you can use to get them removed.

This article is from Ryan Greeley’s website and can be found here.

Over theself past couple of years Ryan Greeley has gone from bad credit to perfect credit by learning everything there is to know about the subject.

Ryan Greeley strongly recommend monitoring your credit report and credit score to see right when it’s removed so you can keep track of your progress. TransUnion has the best credit report monitoring in my opinion, plus they include your credit score for free.

Many credit cards offer free credit scores these days. Barclay, Citi, Discover and some American express accounts have this feature.

1. Request a Goodwill Adjustment from the original creditor to remove the late payment

The idea is simple and it works incredible well. Many times creditors are happy to grant “goodwill adjustments” if your previous payment history is relatively good and you have established a good relationship with the creditor. This is probably the easiest and surest way to get a late payment removed from your credit report. The process involves writing the creditor a letter explaining your situation (why you were late) and asking that they “forgive” the late payment and adjust your credit report accordingly.

2. Negotiate removal by offering to sign up for automatic payments.

Ryan Greeley has never actually tried this method, but from what he understand creditors frequently offer to remove late payment entries if you, in exchange, agree to sign up for automatic payments. He really like this idea because it works out well for both parties: the creditor can ensure future payments will be made on time, and you don’t have to ever worry about missing another payment. Several of Ryan Greeley‘s  readers have verified that this method did work for them, so try this next if a goodwill letter doesn’t work.

3. Dispute the late payment as inaccurate

While we certainly do not advocate lying (that is, claiming an entry is inaccurate when you know it’s not), if you find ANY inaccuracies on the late payment entry (dates, amounts, etc), you can dispute the late payment as inaccurate.

Sometimes creditors have a difficult time verifying the exact details of your account history. Therefore, if you dispute the late payment and they are unable (or simply don’t bother) to verify it, the negative entry will be removed. This is also a great technique on how to remove collections from credit report.

4. Have a professional remove the late payment

Lastly, if you’re the type of person who would rather have a professional handle it and just be done with the whole thing, we suggest you check out Lexington Law Credit Repair. They’ll take care of you. They have a free consultation that may be of interest to you. Give them a call at 1-844-764-9809 or Check out their website.

View our home buying series here: Mortgages, Home Loans, Refinance, and Interest

And don’t forget to follow us on Twitter to be entered into our $50 Giveaway!

In Summary

Late Payments Can Be Removed From Your Credit Report

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Mortgages, Home Loans, Refinance, and Interest

We will begin a new series today on Home loans. We will cover many topics from what to look for in buying a house through the home buying experience all the way to refinancing years later.

Here are some of the topics we will discuss. Bookmark this page as we will link back to all these topics once they are written.


And many more topics. Stay tuned!

And don’t forget to follow us on Twitter to be entered into our $50 Giveaway!

In Summary

Stay tuned to learn more about buying a home.

 

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Holiday Shopping Tips For Black Friday And Cyber Monday

Black Friday and Cyber Monday are here! Scores of people who are lining up out the door to get the greatest sales of the year. Deep discounts and all time low prices on all toys, games, electronics and fashion. But be wise and maximize the holiday season without compromising on important values.

Use a credit card that offers return protection.

Many times we give gifts that we thought were (and still is, but the recipient is an ungrateful idiot)‎ a great gift idea. The scarf for our Mom or new Galaxy S5 for our Dad. After the holiday we try to return it but we are flat out declined.

 

Unhappy about her gift

If you would have bought it on an Amex Starwood Card that offers nice “return protection” if the store doesn’t allow you to return it you can get your purchase price back. Sometimes they make you send the product to them, other times you get to keep it‎. Never abuse any protection that any credit card issuer offers.

Alternatively you can shop at stores that offer extended returns until after the holiday. Merchants like Amazon and eBay require their top sellers ‎to accept returns until 1/31/2015. This will provide ample time for a return.

Beware where you use your Credit Cards

Often there are spammy sites that offer products for very cheap. You were looking for that exact item, and they are $50 cheaper then any other store. Chances are, they are running a scam. Stay away from these sites. Remember the old rule: If it sounds to good to be true, it probably isn’t.

Register your Amex cards for Small Businesses Saturday

American Express offers a $30 ($10*3) for shopping small. You would need to register your card here first. Look at this Shop Small map to know which retailers accept your cards. Read more here.

 Check your credit card statements

After all the shopping is done you are elated with your purchases. But your job isn’t over yet.‎ Going through your credit card statements should be done every month. This month it is especially important. With the cashiers all rushed and the frenziness in the stores, there is bound to be errors. A quick look over your statements to make certain you weren’t overcharged (or undercharged), billed twice or another human error. A moment of caution can save a large expense.

Don’t forget to follow us on Twitter to be entered into our $50 Giveaway!

In Summary:

Be cautious while shopping during Black Friday and Cyber Monday.
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Free Credit Monitoring From AllClear PRO service Via Home Depot and UPS!

Home depot, Target and UPS have all been “targets” (no pun intended) for identity theft. Crooks and cyber thief’s have hacked the system and stole thousands of credit card numbers. Identity theft is growing rampantly, and there is no better way to watch it then by using an identity theft service. Home Depot is offering a free service from AllClear PRO service to monitor your credit for a year.

Home Depot Link

UPS Link

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There is a 3 boxes to mark off

  • I believe I may have used a payment card at a Home Depot store after April, 1 2014
  • Full Name
  • Email Address

Once you get the email chances are there will be a link and a code to complete your subscription.

UPS has issued a press release as well offering the same service. Target has done the same thing back when they had their breach. Personally I did not benefit from the service. However, if it is free then take it. The form for UPS is the same as Home Depot.

Home Depot issued a press release here.

The Home Depot Provides Update on Breach Investigation
  • Breach confirmed
  • Investigation focused on April forward
  • No evidence of debit PIN numbers compromised
  • No customers liable for fraudulent charges
  • Customers offered free ID protection, including credit monitoring services

 

ATLANTASeptember 8, 2014 – The Home Depot®, the world’s largest home improvement retailer, today confirmed that its payment data systems have been breached, which could potentially impact customers using payment cards at its U.S. and Canadian stores. There is no evidence that the breach has impacted stores in Mexico or customers who shopped online at HomeDepot.com.

While the company continues to determine the full scope, scale and impact of the breach, there is no evidence that debit PIN numbers were compromised.

Home Depot’s investigation is focused on April forward, and the company has taken aggressive steps to address the malware and protect customer data. The Home Depot is offering free identity protection services, including credit monitoring, to any customer who used a payment card at a Home Depot store in 2014, from April on. Customers who wish to take advantage of these services can learn more at http://www.homedepot.comor by calling 1-800-HOMEDEPOT (800-466-3337).

“We apologize for the frustration and anxiety this causes our customers, and I want to thank them for their patience and support as we work through this issue,” said Frank Blake, chairman and CEO. “We owe it to our customers to alert them that we now have enough evidence to confirm that a breach has indeed occurred. It’s important to emphasize that no customers will be responsible for fraudulent charges to their accounts.”

The investigation began on Tuesday morning, September 2, immediately after the company received reports from its banking partners and law enforcement that criminals may have hacked its payment data systems.

Since then, the company’s internal IT security team has been working around the clock with leading IT security firms, its banking partners and the Secret Service to rapidly gather facts and provide information to customers.

Responding to the increasing threat of cyber-attacks on the retail industry, The Home Depot previously confirmed it will roll out EMV “Chip and PIN” to all U.S. stores by the end of this year, well in advance of the October 2015 deadline established by the payments industry.

The Home Depot is the world’s largest home improvement specialty retailer, with 2,266 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2013, The Home Depot had sales of $78.8 billion and earnings of $5.4 billion. The Company employs more than 300,000 associates. The Home Depot’s stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor’s 500 index.

###

For more information, contact:

Financial Community
Diane Dayhoff
Vice President of Investor Relations
770-384-2666
diane_dayhoff@homedepot.co

News Media
Stephen Holmes
Director of Corporate Communications
770-384-5075
stephen_holmes@homedepot.com

Important Reminders:

  • Your identity protection is completely free. You will never be charged.
  • Review your credit card statements carefully and call your bank if you see any suspicious transactions.
  • Be aware of phone calls or emails that appear to offer you identity theft protection but are truly phishing schemes designed to steal your information. Always go directly to The Home Depot’s website or to the AllClear ID website for information rather than clicking on links in emails.
  • The information captured in this sign up process will not be used for any purpose other than providing you with protection.

For additional details or questions regarding this incident, please visit http://www.homedepot.com.

Other great articles to read:

Credit Score: What Makes Up Your Credit Score

Credit Score: How To Fix A Poor Credit Score

Credit Score: How To Improve A Low Credit Score

FACO Credit Score FICO Score: What’s The Difference?

And don’t forget to follow us on Twitter to be entered into our $50 Giveaway!

In Summary

Free Credit Monitoring From AllClear PRO service Via Home Depot and UPS!

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APR: What You Don’t Know Can Hurt

We will have a small series now on different terms used in the financial world. Get yourself accustomed to using the correct terms while talking to your banker. Some terms we will cover are: APR, Interest, Compounded Daily, Principle, APY, and others.‎ Today’s lesson will be focused on APR.

Image HT: Expand My Wealth

Advertising Disclosure: We may receive an affiliate commission for some of the links in this post.

What is the APR thing?

APR stands for Annual Percentage Rate. You see APR on credit cards loans and on CD’s (certificate of deposit). ‎The APR is a very important number to look at, as it can make a difference of $1000’s of dollars.

How does the APR affect me?

The APR can affect you in two ways

1) As a borrower

2) As a lender

Your APR is the additional money earned or charged over the original loan. On a CD it is the amount you will earn. On a credit card it is the additional amount that you owe.

As a borrower

When you borrow money from the bank, or use your credit cards you may be charged interest. The interest charged to you is going to be called the APR. ‎In the terms and conditions of every credit card it displays the rate that you will be charged.

For example, if your interest was an APR of 10% and you took out a $1000 loan. Your‎ interest due will be $100  (this will get a little more complicated when we discuss APY and compounded daily) . The APR as a borrower is the amount above your loan that you will be paying.

As a lender

When you open a CD in the bank you are in essence “lending” the bank money. The bank then lends it to other people and everyone makes money. The bank is willing to pay you a small percentage as interest. The interest that you receive from the bank is called APR.

For example if you open a year CD with $1,000 and it has a APR of 5% you will make $50 at the end of the year. ‎(This will get a little more complicated when we discuss APY and compounded daily) . The APR as a lender is the amount above your deposit  that you will be receiving.

When looking for a credit it is always wise to make sure your APR is low. You are able to Lower Your APR To Save Money, as we discussed here. Many cards out there give a introductory APR of 0%. Some examples of cards can be the:

Blue Cash Everyday

And don’t forget to follow us on Twitter to be entered into our $50 Giveaway!

In Summary

We will begin a series on key financial concepts. Today we explained the difference of an APR between deposits and loans.

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Credit Inquiry: Hard Pull Vs Soft Pull

A credit report is comprised of all your credit related accounts. These accounts include: credit cards, student loans, mortgages, car payments and others. It also includes outstanding debts, or unpaid bills. Those can include: doctor bills, utilities, credit cards and others. You want to avoid getting multiple hard credit pulls (inquires). That’s why people like doing 3BM, and App-O-Ramo’s. See more about this in our FAQ section or in our post: Hard Credit pulls and soft  Pulls

Some places take a hard Pull on your credit report, like a credit card application, morage or a car loan. Other places take a soft pull on your credit, like checking your credit score, or opening a utility account. Your library doesn’t take any credit pull.

Is it a Hard Pull or Soft Pull when I …

Apply for a Credit Card?

HARD PULL

View my account on Credit Karma?

SOFT PULL

Apply For a Car Lease?

HARD PULL

Apply For a Library Card?

NO PULL

Apply For a Mortgage?

HARD PULL

View my FICO Score?

SOFT PULL

Apply For Checking Account?

Some banks (Citi) Have been reported to take a HARD PULL

Request a line of credit?

HARD PULL

Open a Utility Account (Gas, Water or Electric)

SOFT PULL

Open a new Cell Phone Account?

Soft Pull

Why should you care about your credit score?

Your credit score plays a huge role in your finance history. Your score is dependent on 5 factors. Keeping all 5 of these factors will ensure a great credit score.

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Image HT: BetterCreditBlog

1) A Good Payment History – 35%

A good payment history plays the biggest factor of your score.

Why?

The reason is simple. The credit card issuer cares about getting their money back. If you can’t pay them back you are a risk. They don’t want to lend you money. Keeping a good payment history is also in regards to medical bills, car payments and utilities. If you have an outstanding balance on one of these your credit score will be negatively affected. Delinquencies, accounts in collection as well as late payments are also factored into this category.

2) Credit Utilization or Amounts Owed – 30%

Credit Utilization is how much of your credit line you are using. If you have one card with a $1000 credit line, and you spent $500, you have used 50% of your credit. The lower percentage of credit you are using, the better off you are. The total credit is calculated by all your cards credit line vs all purchases. If you have 5 cards with a credit line of $1000, and made the same $500 purchase, your CU (credit utilization) would drop to only 10%. Never go above 30%, and a credit utilization of under 9% are the best.

Why?

When someone is using a large portion of their credit, they are “dependent” on their credit. Banks don’t like that, especially if you are applying for a new card. It makes you look like a compulsive shopper, and a credit risk.

3) Age of Accounts 15%

The longer your cards are open the better. The age of accounts are calculated by means of an average. If you have one card for 5 years and applied for a new credit card today, the age of your cards has now fallen to 2.5 years (2 cards over 5 years and 0 years).  Always keep your no annual fee cards open, as they build your accounts age. Additionally never close your first card, as it is the start of your credit history and age. Apply for cards like the Chase Freedom which are great beginner cards. Read more…

Why?

A late payment on a card that you have for 5 years is better then if you only had the account for 1 year. The longer you have a credit history, the more the bank knows about you. When the banks see more information about you, they are grant credit quicker.

4) New Credit – 10%

FICO look at the amount of new accounts as well as credit inquiries on your report. Read here about credit inquiries.

Why?

Every credit inquiry you have is a request for more credit. The more credit inquiries i.e applications, limit raises etc. the worse off you are. The more requests for credit, the worse off you are. People try to make multiple credit applications into a consolidated one (3BM). This way you have less credit pulls on your account.

5) Types of Credit In Use – 10%

Not all credit was created equal. A credit card from a acclaimed bank holds more bearing then a Chain store card like Macy’s. FICO considers the debt/payment of these cards more informative towards your credit worthiness.

Why?

Credit cards that let you swipe anywhere are called “Revolving Accounts”. They have the most weight in “Types of Credit”, since they are user defined. They show better debt management skills. Student loans, car payments and mortgages are called “Installment Loans”. An installment loan is a loan that is repaid over time, and has a set dollar amount. Therefore they do not give as good credit as a  credit card that has no set payments.

What doesn’t have an affect on your score?

Marital status, Age, Receipt of public assistance, Income, pension, Occupation, Employment history, Student, Race, Age, Rental agreements, Participation in a credit counseling program, Money in the bank.

And don’t forget to follow us on Twitter to be entered into our $50 Giveaway!

In Summary:

Only a Hard Pull affects your credit, like a new credit card application, a soft inquiry – like a new cell phone account,  doesn’t.

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Business Credit Cards: Facts And Myths

With the rumor of the 70k Chase Ink card only 5 days away, we wanted to educate our readership regarding the benefits of a business credit card. There is much talk about the benefits of the business credit cards, but not everything you hear is true. Let’s discuss some of the Facts and Myths.

Advertising Disclosure: Some of the links in this post may contain an affiliate commission.

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“You need an EIN in order to obtain a business credit card”

Myth!

A business credit card can be opened under a social security number. Look at the image below, it is a screen shot from the Chase INK Plus application.

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There is a small question mark next to Tax Identification Number. If you hover your mouse over that question mark it will state “If you do not have a EIN then you can enter your social security number here”. You are able to use your social security number and NOT a EIN.

“Business Credit Cards don’t affect your credit”

Fact!

One of the most important parts of your credit report is your CREDIT UTILIZATION. What percentage of your credit you are using. For example if you have $10,000 credit line and you spent $5,000 you have used 50% of your credit. Credit used on Business cards do not reflected on your personal credit score.

Business cards can play an important role on your credit report. Getting a business card can reduce your credit utilization. Business cards are also harder to get then personal cards.

“Business Credit Cards Are harder to get approved”

Fact!

The banks are looking to make sure the business are valid business. Many credit cards out there are targeted for “Fair” or “Good” credit. Business credit cards require Excellent credit. Only apply for a business credit card if you have excellent credit.“Business Credit Cards Get Higher Credit limits”

Myth!

Although in reality it makes sense that business need larger credit lines there is no conclusive data to this effect. Credit limits are reflected on each individuals spending habits. A new business can receive a small credit limit of only $10,000, where a 50 year old man can have a $50,000 credit limit on his personal card.

Read more about Business Cards here.

And don’t forget to follow us on Twitter to be entered into our $50 Giveaway!

In Summary:

Getting a business card requires excellent credit, not necessarily will you receive a higher credit line and you can apply using a social security number.

Did you have a business credit card question that you were unsure if it was a fact or myth, ask us in the comments!

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Business Card Benefits: How A Business Card Impacts Your Credit Score

Recently there has been a bang in Business credit card signup offers. There was a 150k Targeted Platinum Card, as wells as a 100k offer. Currently there is a 40k American Express Platinum card offer. There has also been, as well as still available the  Chase Ink cards, now at 60k instead of 50k. The question everyone has is, “how does a business card effect my credit score”?

Can I get a business card without a EIN number?

Yes. You are able to use your social security number instead, just  indicate that it is a sole proprietorship.

Do I need to own a business to get a Business Credit Card?

This borders a fine line of ethics. Some say if you don’t have a business then you cannot open a business card. Others maintain that as long as you are doing business then you can open a business card. They go further and say that even selling a few items on eBay would be a valid business.

We maintain that applying for a business credit card without operating a business is fraud. We do not advise to open a business credit card if you do not have one.

Business cards have a very big benefit over personal cards. A business cards spending doesn’t get reported to the credit bureau. Your credit utilization will be lower.

What are the benefits of a Business Credit Card?

  1. Many business cards offers employee cards. This gives a separate card number for each card holder. Tracking employee spending is a breeze. In your account, there will be a separate tab for each employee.
  2. Keep your personal and business expense separate. When you have only one  credit card all of your purchases get mixed together. Having an exclusive card for business purchases separates it.
  3.   Organized financial statements. Banks tend to give out quarterly notices, and reports.
  4. Business card have extra bonuses in categorizes that consumer cards never have. Some examples are the 5X in office stores, or on advertising.
  5. Extra signup bonuses!

Is that all?

NO! The biggest benefit is the effect, or lack of effect on your credit score. The credit utilization on a business card doesn’t effect your personal score. You want to keep your credit utilization low, as we discussed here.

In Summary:

A business card has many benefits. It will impact  your credit score and make it better, by lowering your credit utilization, additionally give better rewards, and make employee spending easy to track.

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Why Your First Credit Card Is So Important

If you are  ready to apply for your first credit card, congratulations, you came to the right place. We take pride in helping people advance their credit, and we would love to assist you too! There are several reasons why your first credit card is so important.

Why Your First Credit Card Is So Important

  • It is the start of your credit history
  • It will be your oldest account
  • You will probably never close it

We discussed in depth the importance of good credit, what your credit score depends on and how to improve your credit score.

Your first credit card starts your credit history. It is the oldest account in your portfolio. It adds to your account’s age average. It is usually never closed.

Your first credit card starts your credit history

When you are applying for your first credit card you are making a statement. You saying that you are ready to build a credit history. When the banks give you a credit card, you are getting a line of credit from them. Month after month of good payment history does wonders to your credit. It encompasses 35% of your FICO credit score.

It will be your oldest account

The age of your accounts play an important role on your credit report. 15% of your scoring is factored off your accounts age. The older your accounts are the more trust the bank has in you. Your account history starts from your first credit card.

You will probably never close it

It isn’t wise to close the first card you opened. It has the longest credit history. It is smart to chose a card that has no annual fee as your first card. We recommend a card like the Discover IT® for a starter card. It has no annual fee, and only need fair credit to be approved. Read our review on the Discover IT® card here.

Articles that may interest you:

Beginners Guide To Credit Cards: How What When Why Where

Credit Score: How To Fix A Poor Credit Score

Credit Score: How To Improve A Low Credit Score

In Summary:

Your first credit card is so important because it has a big impact on your credit report.

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