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Overview
Basic Finance
How Credit Affects You
Preparing for Homeownership
Steps for Buying a Home
Life as a Homeowner






 
How Credit Affects You
Key Points Summary

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The following key points were discussed in How Credit Affects You:
  1. Credit allows you to borrow money in exchange for a promise that you will repay the money at a later date. Having good credit may provide you with a variety of benefits including the increased ability to get a loan, lease an apartment, obtain an insurance policy or even compete for and/or get a job.

  2. If you don’t have a credit history, you may establish one in many ways — by applying for a secured credit card, establishing a non-traditional credit history, or by getting a co-signor for a loan.

  3. When you receive offers for credit cards, be sure to read the fine print and understand the terms of each card. Compare the fees, charges and benefits to decide which is the best card for you.

  4. A credit report is a record of your credit history, including your debt repayments, late payments and public records such as bankruptcies and tax liens. It is important to review your credit report on a regular basis and correct any errors.

  5. You can improve your credit, regardless of your situation. The most important way you can build good credit is to pay your bills on time.

  6. Your credit report and score may directly affect your ability to get a loan. Good credit could save you thousands of dollars in interest expenses over the life of your home loan.

  7. You can take steps to help protect yourself from identity theft. Shred papers that contain your personal information and be cautious about giving out any personal information. Report lost or stolen account cards immediately.
Next stepNow that you have reviewed the Key Points Summary test your homeowner knowledge with our Quick Quiz.

When you are finished, continue to Preparing for Homeownership to learn how you can start down the path to homeownership.




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