Interest Rates are Going Up - How’s Your Credit Score?

With interest rates rising and now we are living in an inflationary economy, it’s even more important to establish your credit and to keep your credit score high. Why? Well, it’s because interest rates will affect both savings rates & debt/loan rates. If you are going to make any large purchase through any loan, you’ll get the best rates with better score, saving you more money for being responsible.

As soon as you’re 18, you should learn about credit and begin establishing your credit history. How do you go about doing this? Well, I have a free Financial Checklist and Guide that will clearly walk you through the steps and more!

One important method to build your credit, besides getting a credit card and paying it off each month, is to become an authorized user of someone who trusts you and whom you can trust (generally your parents or family member).

By being an authorize user on someone else’s credit card, you will start to build your own credit history, piggyback on their already established credit card history and use their credit card benefits. It was something my sister did for me when I first turned 18. She added me, so I can use my own credit card that is linked to her credit card to pay for gas and car maintenance charges.

However, there are two important things to consider. If the primary credit card user doesn’t pay their credit card on time, etc., it will negatively affect your credit history too. In addition, be sure to check the credit card company if they do report activity for authorized users - it is very important to check that out first.