How To Establish a Good Credit History

The key to establishing a good credit history is honoring your promise to repay loans, or credit cards as agreed on time and in the amounts schedule.  Failure to do so will make it diffucult and costly for you to borrow money for the things that you need for yourself and yur family, including a home, an education, or medical care.

Even though your intentions may be good, events may occur such as  medical emergencies or losing a job, that impact your ability to repay your loans. That's why it's critical to set up and contribute regularly to a savings plan.  By doing this, you will have funds available to honor your credit agreements in spite of unforeseen challenges.

Remember that even if an emergency, is the reason for you late payment or delinquent account, it can be reported to the credit reporting agency.

If you do not have a credit, rarely borrow money, or use a credit card, consider applying for one or two cards to establish some credit. Shop around and review the interest rates and fees.  Use the credit cards carefully, paying off the debt each month.  You should alse keep your overall debt a a reasonable level relative to your income.  Generally speaking, your expenses should not exceed more than 20% of your take home net pay, excluding a house payment.

Remember, Credit is a privilege!  The ability to borrow money at reasonable terms and rates can not be taken for granted or assumed.

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Mortgage Interest Rates as of 08/10/2009

Loans up to $417,000 Rate APR
30 Year Fixed 4.625% 5.011%
15 Year Fixed 4.125% 4.770%

Loans up to $1,000,000 Rate APR

5 Year ARM 8.875% 6.245%

5 Year Interest Only ARM 9.000 6.289

FHA Rates Rate APR
30 Year Fixed 5.000% 5.497%
15 Year Fixed 4.250% 4.915%