Learning Center
Basic Finance
How Credit Affects You
Preparing for Home Ownership
Steps for Buying a Home
Life as a Homeowner






 
Module 2
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. Good credit gives you a variety of benefits including getting loans, leasing an apartment, getting a home loan, getting an insurance policy or even getting a job.

  2. If you don’t have a credit history, you can 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 directly affect your ability to get a loan. Good credit can save you thousands of dollars 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 Step
Now that you have reviewed the Key Points Summary test your homeowner knowledge with our Quick Quiz.

When you are finished, continue to Preparing for Home Ownership to learn how you can start down the path to home ownership.

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