What is Credit?

Understanding The Importance Of Your Credit Rating

Credit comes in many forms, like a credit card account, a personal loan, or a mortgage. When you borrow money, you and the lender agree when you will repay the money. If you repay the money on time, you build a good credit rating – also called a credit score. Credit scores are a financial tool, in other words, but whether they’re a lever or a hammer depends on how good they are. If you do not repay the money on time, you can hurt your credit rating. A good credit rating is important because it tells lenders that they can trust you to pay your bills and pay back loans. This will help you get more credit and get better interest rates.

Your credit scores determine a lot more. Insurers use credit scores to set premiums for auto and homeowners coverage. Landlords use them to decide who gets to rent their apartments. Many cell phone service, and utility services providers determine who gets the best cell phone plans and who has to make bigger deposits to get utilities.

To find out more about your FICO Score, visit this page.

Who Gives You Your Credit Rating?

In the US, three large agencies – Equifax, Experian, and TransUnion – look at your financial history and assess you a credit-rating number, also called a credit score. The higher your score, the better.

How Do You Establish A Credit Rating In The US?

Your credit history from your home country does not come with you. You will have to start building a new credit rating in the US. One of the easiest ways to do this is with a credit card issued by a US based bank.

By using a US Issued credit card and repaying the money that you borrow on time, you will establish a good credit history, and get a good credit rating.

To find out more about your FICO Score, visit this page.

Understanding Your Credit Score

Once you have started building your credit rating in the USA, you can get a copy of your credit report. This report will tell you what your credit score is. Most credit scores have a 300-850 score range. The higher the score, the lower the risk to lenders. A “good” credit score in the US is considered to be in the 670-739 score range.

You can get a copy of your credit report once a year for free from either TransUnion www.transunion.com, www.experian.com, or Equifax www.equifax.com.

Citus Card is a great tool to help build up personal credit. To learn more about Citus credit card products, please click here.

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