The power of credit building.

Credit has a big impact on our lives. Your credit score impacts where you live, what you drive, where you work, and how you can survive a financial crisis. So take a look at what credit building can do for you.

What is credit building?

Put in the simplest terms, credit building is getting positive information onto your credit report. While you may pay all your bills on time—utilities, rent, or your phone bill, for example—nost of these payments aren’t reported to the credit bureaus. Here’s who definitely reports to the credit bureaus: credit card companies and companies that offer installment loans. So, the best way to get a good score? Open at least one line of credit and manage it well.

The difference between prime and subprime.

You may think that a credit score doesn’t mean much, but the difference between a good score (prime) and a bad credit score (subprime) can be thousands of dollars.

What’s the difference between prime and subprime credit scores for a $10,000 auto loan?

Buying a Car with a $10,000.00 Auto Loan

In one year, with just a car payment, the difference is massive. Add all the other expenses that come with a subprime credit score—more interest paid on credit cards and mortgages. A prime credit score can lower your expenses and help you in a pinch.

What does good credit get you?

A good credit score has lots of benefits:

  • Lower interest rates for credit cards
  • Lower interest rates on car loans
  • Lower premiums for car insurance
  • Access to quality rental housing
  • No need to access payday loans with inflated rates
  • No inflated rent-to-own rates

How does Working Credit help?

The credit system can seem murky and mysterious, but once you learn the rules, you can easily reap the benefits of good credit. And that’s why we’re here. A Working Credit counselor can be your partner in learning the rules of the credit system, creating a Credit Action Plan—a roadmap that leads to your financial goals—and making lasting financial changes.