Credit

The credit plays crucial role in the world. Especially in the US, it is even more important factor to get better deals on mortgage or loans, and lower interest rates on credit cards. However, some people don't care of their credit scores and reports. Since I got my social security number 8 years ago, I've been building my credit for 8 years. I couldn't do anything without my credit history when I became a college student. I wanted to apply credit cards but they required pretty decent credit score. I even had to deposit couple hundred dollar when I opened a cell phone.
There are three credit bureau in the US where they monitor people's credit score and reports. Then these reports are calculated by FICO score, ranging from 300 to 850. The average credit score in the US as of now is about 700(From wikipedia). Mine is about 730 since I've never had late payments for 8 years.
There are 5 important rules to follow to maintain good credit. The first one is Debt ratio. It is best to maintain credit balance 20% of total credit limit(If total credit limit is 10k, it is better to use up to 2000 dollar and pay them full each month). The payment on time is the second important factor. These consist the total credit score 65% already. Rest of factors are things like how many credits I applied for last 2 years, how many accounts do I have, or how long is my credit history. So it is better not to apply too many credit cards in short period of time. And it is also not good idea to close the oldest credit card I have. I hope my blog can help people who didn't realize about their creidt or people who want to build a decent credit.