How to Use Credit
Effective Legal Counsel in Phoenix, Salt Lake City & Beyond
Most Americans are in debt, plain and simple. While debt can certainly become a huge problem for people if it gets out of hand, there are instances where using credit can help you reach your goals and improve your credit score. Law Zebra works with consumer protection attorneys throughout the country to help them make wise financial decisions, protect their interests, and pay for the things they need.
Strategies for Building Credit
Your credit score can help or hurt your ability to obtain loans and even find a job. When used correctly, credit can both pay for things and provide you with the loan history you need to seize better opportunities. When a person buys too much on credit, of course, their habits could lead to bankruptcy and devastate their credit score.
You can improve your credit score through:
- Credit cards: By spending no more with your credit card than you have in your checking account, you can make all the same purchases you normally would while also showing that you can pay off a balance on time and in full. This will do wonders for your credit score.
- Loans: For more significant purchases such as cars, homes, or education, loans offer a lump sum of money that can be paid back later. If you are consistent in your loan payments, your credit score will reflect that. Whenever possible, avoid subprime loans that cost exorbitant sums in interest payments.
- Minimizing your number of creditors: If you have too many debt sources, it could hurt your credit score. Avoid the temptation to open another credit card to get the deal. Each time your credit limit increases, your credit score becomes vulnerable to take a hit.
What If You Can't Get a Credit Card?
For people who have no credit—whether through bankruptcy or simply from not having used credit—banks offer secured credit cards that are funded by an individual's money. Rather than giving a person a credit limit on a card, they instead secure their investment by making sure the card already has the money the person wants to spend. These kinds of cards can increase your score and make it easier to find opportunities in the future.
Have more questions? Call (801) 820-9955 now.
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