In your personal life, your credit rating can impact your ability to purchase a home, a car, or other necessary items. It can also determine what type of interest rate you will have to pay.
Do you own or rent your home? What type of home would you like to live in now or in the near future? Many dream of being a homeowner, yet there are many considerations to factor into deciding if home ownership is the best choice for you and your family. For example, does your budget allow you to pay for a mortgage and maintenance? How would you know if a mortgage is affordable?
Additionally, your credit history and credit score could impact whether or not you qualify for a mortgage or for other types of credit. As part of this determination, your credit report will show how you use credit. The good news is that your credit report is frequently updated, and that can help you build and improve your credit score. Have you viewed your credit report lately? Do you know your credit score?
Respond to the following:
How do you build and maintain a positive credit history that leads to a high credit score? What changes could you make to improve yours?
If you have a friend who is hoping to buy a home in the next few years, what should your friend know about the process of finding and paying for a new home? What do they need to know to make the home-buying process smoother? How does their credit score affect this process? How would your friend determine what is affordable?
