When you buy a new home, you need to borrow money for the mortgage. So, the bank will want to check your “credit history” to see if you pay your bills on time or not. Some people don’t have a credit history because they haven’t used credit cards or taken out loans before. So, it is important to start to build a credit history so that when you get ready to buy a home you can get a credit report that shows information about your credit history. A credit report will list a special number called a FICO score. Usually the number is between 300 and 900. The higher the number, the better your credit is and that will help you get a better interest rate on your mortgage. So, having good credit can help save you money.
Listen to Elisa and Melissa talk about different ways you can start to build up your credit history. Take notes and write down two or three ways you can start to build your credit history.