Sunshine Holets: Your credit score helps you get loans and helps get jobs is well I started to build my credit as soon as I turned 18 I applied for a JC Pennies card used it but paid it off each month than I got other department stores ones I used them and paid them off. I applied for a sears card than I canceled them and got master card. Credit cards will raise your credit score if you pay on time lower it if you don't. it is a good way to build credit but only within you financial means that you can afford to pay it off I got car loans from starting you and I own my own home and got bought it when I was 28. I have no credit cards now and have a very high credit score I pay cash and can get loans with my credit no problem...Show more
Elinore Schlinker: It "WILL" show up on your credit report as open but say if it's $500 worth of credit and it's open but not activated do not activated and let the credit amount work in your favor. Let them close it for being inactiv! e and you will lose a few points but by that time it would have help you gain more than you've lost.
Antone Bual: Credit Score: this score is determined by the credit reporting agencies and FICO by taking a number of factors into consideration including but not limited to: payment history, amount owed, and length of time an account has been open. Exact scales for traditional credit scoring vary from bureau to bureau, but are around 350 - 900.You can have credit score without a credit card.Getting a credit card and keeping your account balances less than 50% of your available credit help you to raise your score.Cards with set amount of money will not effect your credit score....Show more
Shan Lanen: A credit score is a calculation of how likely any particular person is to pay off a debt. The company that started it is called Fair Isaacs, although many other companies have similar models.What happened is that in the 1970s, credit card companies realized that some! people were more likely to pay off their credit card bills, a! nd so they gave those people higher scores. The range of scores is about 350 to over 800. The higher your score, the lower interest rates you pay. So, someone who has missed some payments and has a score of 550 will pay a higher interest rate than someone who never misses a payment and has a score of 750. Companies charge higher rates because they're taking more of a risk that the amount of money won't be paid.They don't teach these things in school, sadly. You can learn more by reading a book on it. I suggest "Pay It Down" by Jean Chatzky.You can get a credit score without a credit card: by buying a car or paying a utility bill, for example.A credit card might raise or lower your score. If you get several cards at once, your score might drop until they see how you do at paying them off. If you've had one for a long time, and pay it off over time, then that raises your score. If you owe a lot of money on the card, perhaps 50% or more of your limit, that lowers your! score.The cards with a set amount don't report to credit bureaus (there are three) and so they don't affect your score.I think you sound very responsible, and when you're ready for credit you will use it wisely....Show more
Chris Wilczewski: When you borrow money or make payments on time, the information is reported to credit card reporting bureaus. If you make all your payments on time, you get a higher score. If you don't make your payments on time you get a lower score. There are other things they look at too to make a credit score. Your total score is what other lenders look at when you apply for more credit. 500-650 is a low score. 750 and above is very good. You can be denied credit if your score is low or you do not have a credit history at all....Show more
Anibal Katayama: If you've never used any kind of credit, you will not have a credit score. Credit cards are one kind of credit people can use to build up a credit history and get a credit score. So a! re auto loans, and other kinds of loans.Prepaid cards do not help your ! credit, but secured credit cars do. A secured credit card is one way to get started, since you need to build a track record of paying on time.Unfortunately schools do not teach students about finance and credit. It's very important. Your parents can add you as an authorized user to one of their credit cards to help you get started early....Show more
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