Building Credit

Building Credit

Credit is important because it's one of the main ways lenders determine whether or not to give you a loan. It also affects the interest rate you're offered on a loan. A good credit score means you're seen as a low-risk borrower, which could lead to a lower interest rate and monthly payments.

For immigrants and African Americans, credit can be a challenge. It can be difficult to establish credit if you don't have a U.S. credit history. And even if you do have a U.S. credit history, you may still face discrimination based on your race or ethnicity.

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1. Pay down your revolving credit balances. If you have the funds to pay more than your minimum payment each month.
2. Increase your credit limit.
3. Check your credit report for errors.
4. Ask to have negative entries that are paid off removed from your credit report.

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