Getting, Building and Fixing Credit

Growing up on welfare we never had credit – we paid cash for everything.  We never thought we could get credit, so we weren’t taught anything about credit.

Later in life I was surprised how easy it was to get credit; even easier to get buried by it, and even harder to recover from it. 

According to bankrate.com, a credit rating, or credit score, is a measurement of a person or business entity’s ability to repay a financial obligation based on income and past repayment histories. 

Banks and lenders use credit ratings or scores to help them decide whether to lend money.

The better your score, the more credit you can get, at lower terms. 

A higher credit score means you can borrow more money, and money at lower interest rates, than people with low, or no, credit scores. 

Now more than ever, so much of our lives revolve around credit. Without credit it’s difficult to rent an apartment, or nearly impossible to buy a car or a house (unless you pay cash for it).

Without credit you pay more for basic services like cell phones or internet services. 

If you want to get utility services, you may have to pay a large deposit if you don’t have good credit established. 

Returning citizens have enough challenges. 

The modern world depends on credit rating now more than ever. The better your credit, the better your interest rate you pay, which can save you a lot of money. Bad credit may have dropped off the credit report for many returning citizens.

As soon as you can, and at least every year, get free copies of your credit report for the major credit bureaus. You can request a free copy of your report every time you are denied credit too. 

There are credit cards designed to help you establish and grow credit. Capital One and Chime are a couple.  Make sure you google “best credit cards to rebuild credit” to see what’s available for you. 

Always pay more than the minimum payment due, or it will take you years and years to pay off your debts. 

Paying your card in full each month is the best and fastest way to build more credit. 

You can build or rebuild credit after prison.  You just have to live within, or under your means, and pay your bills. If you do this the rest takes care of itself.