Building a great credit score from scratch
News from Fox Business:

You’ve likely known that credit scores are important since long before you got your first credit card. But when you’re just starting out in the world of credit, learning how to create a strong credit score can be tricky.

Credit cards can offer the key to beginning your credit history on the right foot, but only if you use them smartly. The guidelines below can help you use your credit cards to begin establishing a great credit score from the start.

Using credit cards to boost your credit score

You must begin using credit to establish your credit score, which for many means applying for a credit card. Once you have that new card, these tips can help you craft good credit that will last a lifetime:

  1. Create a strong credit history. If you’ve never had a credit card before, you’ll probably be limited to card options with a fairly high APR. With high-interest cards, it’s wise to stick to small purchases and pay your balance off before the end of each billing cycle. This will help you save on interest and show lending agencies that you can handle the responsibility that comes with spending on credit.
  2. Consider owning a few cards. After using your first card to make some respon…………… continues on Fox Business

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Related News:

10 Things Credit Scores Won’t Say –
News from 10 Things Credit Scores Won’t Say –

1. “You may never know your real score.”

Roughly 200 million consumers have a FICO score, which ranges from 300 to 850 and is used by most lenders to determine whether to approve them for financing and at what terms. This score is based solely on the information in consumers’ credit reports. While consumers can check their generic FICO score, which weighs how well they have been managing their credit, it’s unlikely they’ll ever know the exact score a lender sees when they apply for credit.

More than 45 FICO scores are available to lenders, says John Ulzheimer, president of consumer education at, a credit monitoring site, and a former manager at FICO. There are FICO scores that assign more weight to certain characteristics, such as borrowers’ credit card activity, or history with car loans, mortgages or installment loans (that include furniture and jewelry payment plans). Car loan lenders, for instance, often pull a FICO auto score which weighs more heavily a borrower’s past car loan activity. Even if they have a stellar generic score, their auto score can be lower if they missed a car loan payment or never had a car loan, which could leave them with a higher interest rate than expected, says Barry Paperno,…………… continues on 10 Things Credit Scores Won’t Say –

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