Now that you know why good credit is so important, it is time to discover how to establish and maintain it. Use the internet to find at least seven (more is better) ways you can establish and maintain good credit. Be sure to note your sources so that you can cite them. Once you have your information create an infographic or an online poster to display your knowledge.
RUBRIC
Student provides at least 7 ways (70 pts)
Student lists sources (20 pts)
Student shows creativity (10 pts)
Posted Fri Jan 5, 2024 at 12:10 pm
Ways to Establish and Maintain Good Credit:
1. Pay your bills on time: Payment history accounts for 35% of your credit score, so making timely payments is crucial. (Source: Experian)
2. Keep your credit card balances low: Utilization ratio, the amount of available credit you are using, should be kept below 30% to maintain good credit. (Source: Credit Karma)
3. Limit new credit applications: Opening multiple new lines of credit can lower your average account age, affecting your credit score. (Source: NerdWallet)
4. Monitor your credit report: Regularly check your credit report for errors or fraudulent activity that could harm your credit score. (Source: Equifax)
5. Mix up your credit: Having a mix of credit types, such as credit cards, loans, and mortgages, can demonstrate responsible credit management. (Source: TransUnion)
6. Become an authorized user: Piggybacking on a family member or friend's good credit can help boost your own credit score. (Source: Bankrate)
7. Use credit responsibly: Only borrow what you can afford to repay, and avoid maxing out your credit cards to maintain good credit health. (Source: MyFICO)
Sources:
- Experian. "Credit Education." https://www.experian.com/blogs/ask-experian/credit-education/
- Credit Karma. "Credit Scores." https://www.creditkarma.com/
- NerdWallet. "Credit Cards." https://www.nerdwallet.com/
- Equifax. "Credit Report Assistance." https://www.equifax.com/personal/credit-report-assistance/
- TransUnion. "Credit Monitoring." https://www.transunion.com/
- Bankrate. "Credit Repair." https://www.bankrate.com/credit-cards/
- MyFICO. "Credit Resources." https://www.myfico.com/