{"id":10198,"date":"2016-04-21T16:44:45","date_gmt":"2016-04-21T20:44:45","guid":{"rendered":"https:\/\/www.bumc.bu.edu\/osfs\/?page_id=10198"},"modified":"2025-12-04T18:10:43","modified_gmt":"2025-12-04T23:10:43","slug":"credit","status":"publish","type":"page","link":"https:\/\/www.bumc.bu.edu\/osfs\/flp\/credit\/","title":{"rendered":"All About Credit"},"content":{"rendered":"

Credit<\/strong> <\/span>refers to the financial trust extended by one party to another, allowing the recipient to borrow money, goods, or services with the understanding that they will repay the borrowed amount, often with interest, at a later date. It is a fundamental aspect of the modern financial system, enabling individuals, businesses, and governments to access capital for various purposes, such as making purchases and funding investments. Creditworthiness, typically determined by a person’s credit history and financial reliability, plays a crucial role in determining the terms and conditions of credit, including interest rates and loan limits. Responsible and timely management of credit is essential for building a positive credit score and accessing favorable borrowing opportunities. However, misuse or default on credit obligations can lead to financial consequences and adversely impact future borrowing prospects.<\/p>\n

3 Important Things You Can Do Right Now for Your Credit<\/h2>\n
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  1. Check Your Credit Report<\/strong>\u00a0<\/span>\u2013 Credit score repair begins with your credit report. If you haven\u2019t already, request a free copy of your credit report and check it for errors. Your credit report contains the data used to calculate your credit score and it may contain errors. In particular, check to make sure that there are no late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts is correct. If you find errors on any of your reports, dispute them with the credit bureau.<\/li>\n
  2. Setup Payment Reminders<\/strong>\u00a0<\/span>\u2013 Making your credit payments on time is one of the biggest contributing factors to your credit scores. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management.<\/li>\n
  3. Reduce the Amount of Debt You Owe<\/strong>\u00a0<\/span>\u2013 This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.<\/li>\n<\/ol>\n

    The FinancialAidTV playlist below provides some more tips on what to consider when reviewing your credit reports and scores<\/p>\n

    \"\"<\/a><\/p>\n

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    Building Credit<\/h4>
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    Building credit is an important step towards financial independence and can help you qualify for loans, credit cards, and other financial products. Here are some steps you can take to build credit:<\/p>\n

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    1. Get a credit card: One of the easiest ways to build credit is by getting a credit card. If you’re new to credit, you may need to start with a secured credit card, which requires you to make a deposit as collateral. As you use your card and make payments on time, your credit score will improve.<\/li>\n
    2. Make on-time payments: Whether it’s a credit card, loan, or any other type of credit, making on-time payments is key to building credit. Late payments can negatively impact your credit score, so it’s important to make payments on time.<\/li>\n
    3. Keep your credit utilization low: Credit utilization refers to the amount of credit you’re using compared to the total amount of credit available to you. For example, if you have a credit card with a $1,000 limit and you’ve charged $500, your credit utilization is 50%. To build credit, it’s generally recommended to keep your credit utilization below 30%.\u00a0Pro-tip:<\/strong> Avoid utilizing more credit than what you can repay in full each month. By paying your credit card statement in full each month you build credit, earn cash back or travel points, and avoid accruing interest and debt!<\/em><\/li>\n
    4. Monitor your credit report: Your credit report contains information about your credit history, including your payment history and credit utilization. You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year. It’s important to review your credit report regularly to make sure there are no errors or fraudulent accounts.<\/li>\n
    5. Consider becoming an authorized user: If you have a family member or friend with good credit, you can ask them to add you as an authorized user on their credit card. As long as they make on-time payments and keep their credit utilization low, their positive credit history will be reflected on your credit report.<\/li>\n
    6. Be patient: Building credit takes time, so it’s important to be patient. It can take several months or even years to establish a good credit score, but the effort is worth it in the long run.<\/li>\n<\/ol>\n

      By following these steps and practicing responsible credit habits, you can build a strong credit history and improve your financial future.<\/p>\n

      <\/div>\n<\/div>\n\n

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       <\/p>\n","protected":false},"excerpt":{"rendered":"

      Credit refers to the financial trust extended by one party to another, allowing the recipient to borrow money, goods, or services with the understanding that they will repay the borrowed amount, often with interest, at a later date. It is a fundamental aspect of the modern financial system, enabling individuals, businesses, and governments to access […]<\/p>\n","protected":false},"author":1008,"featured_media":0,"parent":9486,"menu_order":11,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/pages\/10198"}],"collection":[{"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/users\/1008"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/comments?post=10198"}],"version-history":[{"count":48,"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/pages\/10198\/revisions"}],"predecessor-version":[{"id":15695,"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/pages\/10198\/revisions\/15695"}],"up":[{"embeddable":true,"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/pages\/9486"}],"wp:attachment":[{"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/media?parent=10198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}