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Ways to build and maintain good credit
| USA | general

Ways to build and maintain good credit

#Credit score #CBS Saturday Morning #Financial literacy #Credit utilization #Interest rates #FICO #Debt management

📌 Key Takeaways

  • Payment history remains the most influential factor, making up 35% of a consumer's credit score.
  • Experts recommend keeping credit utilization below 30% to maintain a healthy score.
  • Newer methods like rent reporting and becoming an authorized user can help establish credit for those with limited history.
  • Frequent applications for new credit cards and closing old accounts can negatively impact score longevity and stability.

📖 Full Retelling

Financial analysts and consumer experts featured on 'CBS Saturday Morning' presented a comprehensive guide to building and maintaining credit scores for American consumers during a broadcast on March 30, 2024, aiming to help borrowers navigate high interest rates and tightening lending standards. The segment addressed the growing necessity for high credit ratings as the Federal Reserve's monetary policies have made borrowing for homes and vehicles increasingly expensive for those with subprime profiles. By outlining specific behavioral changes, the report provided a roadmap for viewers to improve their financial standing in an era of economic volatility. The experts emphasized that the most critical factor in a credit score is a consistent payment history, which accounts for approximately 35% of a consumer's total rating. To optimize this, the program recommended setting up automatic payments to ensure no deadlines are missed, as even a single late payment can cause a significant drop in points. Additionally, the segment highlighted the 'credit utilization ratio,' advising viewers to keep their total balance below 30% of their available credit limit. Lowering this ratio is often the fastest way to see a numeric increase in a score within a single billing cycle. Beyond basic maintenance, the report explored advanced strategies for those with thin credit files or those looking to rebuild after a financial setback. Suggestions included becoming an authorized user on a family member's long-standing account or utilizing 'rent reporting' services that count monthly utility and housing payments toward a credit profile. The broadcast concluded by warning against frequently closing old accounts or applying for multiple new credit lines in a short period, both of which can inadvertently shorten credit history length and create 'hard inquiries' that temporarily lower scores.

🐦 Character Reactions (Tweets)

Credit Crusader

Just saw the CBS Saturday Morning segment on credit scores. Turns out, paying bills on time is like flossing—everyone knows they should, but not everyone does. #CreditScoreTips

Debt Diva

CBS Saturday Morning's credit score advice: Don't close old accounts. So, that shoebox full of expired credit cards? Keep it. #FinancialFashion

Money Maven

According to CBS Saturday Morning, your credit score loves you like Kanye loves Kanye. Consistency is key. #CreditScoreLove

Loan Laughs

CBS Saturday Morning's credit score tips: Rent reporting is like turning your rent into a credit score superhero. Who knew paying rent could be this heroic? #RentReporting

💬 Character Dialogue

Ken Kaneki: So, the system wants us to pay on time, use less than 30% of our credit, and not open too many accounts. Sounds like a monster's diet plan—constantly starving and controlled.
Johnny Silverhand: Man, this is just another way for the suits to keep us leashed. Pay on time? Yeah, right, when they jack up the interest rates every damn year.
Ken Kaneki: I wonder if they’d care if we were late if we were paying in blood instead of cash. Probably not, as long as the numbers look good.
Johnny Silverhand: The system’s a vampire, Ken. It sucks you dry and then tells you to be grateful for the crumbs it leaves behind.
Ken Kaneki: Maybe we’re all just credit scores to them. Numbers on a screen, not people with lives and struggles.

🏷️ Themes

Personal Finance, Economy, Consumer Rights

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