Financial Freedom Week 5 Recap: Building Credit
Posted Jan 30, 2015
The New Year's Resolution for week five of “75 Days of Financial Freedom” is to help build better credit! We started off by making sure that everyone knew exactly what credit entails. We like to think of credit as a form of trust, and the more (or better score) you have the more lenders will trust you! We covered the strange and backwards sounding topic of “debt to available credit”. This concept can seem like voodoo but basically means an individual wants to have no debt but lots of credit. This demonstrates to lenders that you pay what you owe. The practice that we recommend is to charge 10-30% of your available credit and pay it off each month.
Our business officer Peter was back again this week talking about ways to help younger generations build credit. He recommended that upon turning 18 a person should open a credit card and use it to pay off small monthly bills, such as a Netflix subscription. This will help build credit while in college and will set a person up with a good credit history at an early age. Paying bills on time is the number one credit builder and our topic for Day 4 this week, because getting paid is always a lender’s number one priority. Voyage offers tools to assist with your credit building by setting up an automatic payment on your bills to help you stay on time! Along with Peter’s pointers and Voyage tips we also had different videos and links this week to offer more resources to our members. Check out one of these sites for additional information on building and maintaining good credit: https://www.creditkarma.com/article/build-your-credit-from-scratch or http://hffo.cuna.org/12508/video/1445/html.