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Get credit, improve your credit score
It may be hard to believe for the credit generation, but some people don't have credit.
While credit can easily be abused, having no credit can be worse since it limits your choices in home buying or even whether you can rent an apartment.
Young people who have never bought a car, women who have just divorced, or recent immigrants may all find they have no credit or credit score.
To start a credit score, open a department store charge account and pay it faithfully for at least six months and one day, the time needed to generate a FICO credit score.
Credit scores range from 300 to 830. The score determines the rate you will pay on a mortgages and loans, and may determine whether you are approved for a new apartment.
Revolving credit, such as credit cards, are considered a better indicator of how you handle credit and so they count more on your credit score than do fixed-payment loans such as mortgages.
A great way to start your credit history is to get a secured credit card. You deposit money in a savings account and get a credit card that has a limit in that amount. You can borrow on the credit card, but you can't take the money out of the savings account until the balance is paid. Pay it on time, you should be able to get a regular card after six months.
Don't apply for too many cards at once. Each time a lender looks at your report, your score goes down.
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