Money Girl answers 8 frequently asked questions about credit cards and gives tips to maintain and build credit.
But credit can be complicated and is often misunderstood, even by savvy people. In this episode, I’ll help you stay out of trouble by answering 8 frequently asked questions about credit cards, and give you tips to maintain and build credit..
Why You Should Build Good Credit
The credit accounts you use, such as credit cards, loans, and lines of credit, lay the foundation for your credit scores. You must have active credit accounts in your name and use them responsibly over time to show that you’re trustworthy and ultimately build credit.
But even if you don’t plan on making any big purchases, most people don’t understand the role credit plays in addition to borrowing money. Not only does having good credit qualify you for low, money-saving interest rates, good credit also gives you:
- lower auto insurance premiums (in most states)
- lower home insurance premiums (in most states)
- lower security deposits on utilities
- more rental housing opportunities
- better chances to get a job
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