Anonymous aquacyclone 4d

General overview of you don’t mind? I do have a few questions though: 1) how does good or bad credit affect you now and in the future 2) if you have bad credit how can you fix it

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Anonymous OP 4d

1) it depends how good or how bad. If it’s too bad it could be harder for you to get a car loan or if you want to get a mortgage to buy a house you’ll have a hard time getting on OR the rates they offer won’t be as good. The idea is that bc you have bad credit you’re more of a liability to loan money to, so they want more to compensate for that risk.

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Anonymous OP 4d

2) Pay your bills on time. Lots of different stuff impact your credit score, but off the top of my head stuff like utilities, rent, credit card bills, car payment, etc. There’s not a “quick fix”, as far as I’m aware the only thing you can really do is pay your bills on time for a couple of years and your credit score will improve over time

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Anonymous aquacyclone 4d

How does using a credit card to build credit work?

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Anonymous #3 4d

When you open a credit account there’s a certain $ amount you’re approved for each month. The amount of money you’re approved for depends on your credit score. Basically you pay for stuff with your credit card & you get a bill at the end of the month for however much you spent PLUS interest (the interest or “APR” also depends on your credit score). Pay off that bill every month & that’ll show up on your credit report —> better credit score over time.

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Anonymous #3 4d

Everything I said about credit cards is **generally** how it works. There’s def some variation depending on the type of credit account & the bank you’re with. If you want to open one they’ll explain all of it when you open your account :)

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Anonymous aquacyclone 4d

Yes ma’am, understood 🫡 thank you for the explanation i really appreciate it

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Anonymous #3 4d

you’re welcome babe :)

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Anonymous aquacyclone 4d

Thank you so much!

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Anonymous OP 4d

You’re welcome! You can DM if you want to discuss anything further :)

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Anonymous aquacyclone 4d

Thanks!!

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