Hi friends,
What is credit? How do I grow my credit? I’m not even sure what other important questions I should be asking.
My parents are immigrants and I’m also one. I moved to the U.S when I was 11. Unfortunately my parents didn’t have the chances that I had and they didn’t get much of an education. Sometimes I feel like I’ve had to navigate a lot of life in the US by myself (SATs, college applications, school loans, etc.) on top of helping my parents navigate it too. I’m a young adult now and I don’t have any guidance and would really like to start thinking about my future. I think credit is a good place to start. Any info/advice is welcome, I literally barely know much about the system. Thank you.
In: 6
Credit is the willingness of other people to loan you money. A basic type of credit would be a credit card. The credit score is a way of taking note of how well you have paid back previous credit, how much credit you currently have relative to income and some other factors.
So let’s say that you have applied to me for a credit card. I look at your information in the credit bureaus and see that you have always paid your car loan on time, have never declared bankruptcy and have never had a loan go bad or get charged off. I see that your salary is 36,000 per year. So I decide that you can have the credit card with a $1000 limit. If you pay it in a timely manner and pay off the car loan, I would be willing to raise it to $2000 in a few years.
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