|
A quick lesson on credit follows. Credit scores, of course, play a large factor on your ability to purchase a home or a car. Your credit score is compiled by three major credit bureaus; Experian, TransUnion, and Equifax. Credit scores can range from 300-850 depending on the bureau.
Credit is a measure of, in short, having tradelines (financed items you pay on a monthly basis) and paying tradelines on time.
Your credit cards are a major component of your credit score. Paying your credit cards on time every month, and paying at least the minimum payment is crucial to your credit score. You may have heard that getting multiple credit cards has a negative effect on your credit score. This is ABSOLUTELY NOT TRUE.
In fact, a major detriment to your credit score is something called 'proportion of balance to credit limit'. What this means is that if you have a credit card with a high balance compared to your credit limit on your card, it actually HURTS your credit score. Thus, someone who has ONE credit card with a balance of $7500 and the limit on the card is $8000, they're doing much more damage to their credit score than someone with TWO cards with balances of $3750 with $8000 limits on both. In short, it's much better for your credit score to have two credit cards with low balances than one with a high balance.
With THAT in mind, why not apply for a low apr credit card online today? |