{"id":7812,"date":"2021-11-15T17:42:16","date_gmt":"2021-11-15T17:42:16","guid":{"rendered":"https:\/\/beta.homelessvoice.org\/?p=7812"},"modified":"2021-11-15T17:42:16","modified_gmt":"2021-11-15T17:42:16","slug":"how-to-help-your-credit-score-and-avoid-bad-credit","status":"publish","type":"post","link":"https:\/\/beta.homelessvoice.org\/?p=7812","title":{"rendered":"How to Help Your Credit Score and Avoid Bad Credit"},"content":{"rendered":"
By Dori Zinn<\/em><\/h6>\n

Less than 40 percent of Americans have enough savings to cover an unexpected $1,000 expense, like a car repair or medical bill.<\/span><\/p>\n

Another 18 percent would have to put the expense on a credit card, meaning they\u2019ll need to pay interest on top of the money they borrow. This is all according to <\/span>a survey from Bankrate<\/span><\/a>, a personal finance website. If you don\u2019t have cash on hand to cover an emergency, you could turn to credit cards like that 18 percent, but what if you have bad credit and don\u2019t qualify for one?<\/span><\/p>\n

These financial issues can lead people to the brink of homelessness, with bad credit making a dire situation even worse. But, you can take steps now to build up your credit and make sure you have options whenever an emergency comes up.<\/span><\/p>\n

 <\/p>\n

What is credit and why does it matter?<\/span><\/em><\/h2>\n

Credit is the act of borrowing money that you\u2019ll pay back later. It comes in the form of credit cards or loans \u2014 like home, auto, student, or personal. Usually it\u2019s paid over the course of a few months or years, accruing interest along the way.<\/span><\/p>\n

Interest is the charge from lenders or credit card issuers for letting you borrow money. It\u2019s a percentage of the loan or charges you build up over time, with most interest charges determined by your credit score and history. The higher your credit score, the lower your interest rate.\u00a0<\/span><\/p>\n

Potential lenders and credit card issuers check this credit score \u2014 a three-digit number that reflects your credit history \u2014 before lending. If your credit score is low, or you don\u2019t have much, or any, sort of history with borrowing money through banks or credit unions, some lenders might be wary, possibly rejecting your application to borrow money outright.<\/span><\/p>\n

 <\/p>\n

What makes up a credit score<\/span><\/em><\/h2>\n

There are many variations of credit scoring models, but the most widely recognized one is the FICO score. <\/span>Your FICO credit score and history<\/span><\/a> are made up of a few different aspects.<\/span><\/p>\n