Greetings everyone,

This is my first post as Co-Author of Money Management and YOU! and I hope you all enjoy!

-Cameron

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People graduate high school or college and discover that they eventually need to purchase a car, mortgage, pay off loans, or purchase various other expensive yet necessary items. From my expertise, I asked my father and mother about how I went about establishing credit. Typically they told me to apply for a credit card or take out student loans and pay them back in due time. However, I still wasn’t sure as to how my credit was established until I made a phone call.

Initially, I called CapitalOne. Obviously, the customer service was located outside the United States and to my surprise, they transferred my tough and slightly confusing questions to a rep. in the US. They explained how using my credit card would help me instanlty establish credit. Heres how it works:

Once you accept and activate any credit card, debit card, or checking account, you are immediately put on credit services radar such as Equifax. Each and every month you pay off the amount owed, points are not deducted from your credit score. A few days after I accepted my first card from CapitalOne, I checked my credit score and I had established credit.

Now when this happened, I was giddy to spend, spend, spend and pay off my bill. I got in way over my head.

Within weeks, I recieved a $5000 credit limit from Bank of America as well as a $1250 limit from Orchird Bank, keep in mind my CapitalOne limit was $250. I immediately accepted these other offers and the rest of the story goes as me paying off money credit card bills that I didn’t appreciate. Shortly after all cards were paid off, I checked my credit report at a well known online service and you will be amazed at how much credit you can accumulate by either having a bank account, being in college, buying a card, and a world of other things that you never knew accounted for your personal credit.

This concludes my first posting here and I hope you enjoy it, I tried to make it simple and short and the ones to follow plan to be in-depth and will dig further in the world of personal wealth and finance.

When all is said and done, I expect you to be the one person in the room with their hand raised when the speaker asks the question, “Who here is financially successful?”.

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Filed under: Debt, Saving