Tim asked Jan for financial advice, so they are meeting here to discuss.
It's a pleasure to meet you Tim. My name is Jan. I'll be your Financial Advisor.
Nice to meet you too! I'm thankful you're here to help because I have some questions about credit.
Can you please explain everything about credit scores to me, because it's quite confusing.
What are your questions?
Your credit score is a numeric value that shows lenders how risky it is to lend money to you.
Also, lenders create Credit Reports to show an individual's credit history. A credit history is a record of a borrower's past credit and loan-related transactions.
Okay, that makes more sense. But my parents didn't have a good credit history. So what can I do to have a positive credit history?
That's a good question. Here are 3 steps you can follow to build a positive credit history:
Step 1: Pay your bills on time. Not paying them on time will negatively affect your credit, and reliability with individuals. Step 2: Have a mix of credit accounts. If you mess up one, and you only have one, your credit will be negatively affected. And Step 3: Check your credit report annually. You want to be able to know how your credit is looking in case you need to borrow money.
I'll be sure to do that. Thank you for your help.
Of course! Just e-mail me if you have anymore questions.