10 Important Credit-Related Questions to Ask Yourself

1. Can I earn a credit score without a credit history?
Yes, you can build credit with no history, you can get a secured credit card, be added as a credit user by another family member, or having a loan cosigned.

2. What types of accounts are reported?
All types are reported, because the mixture of loan types is better for their models to predict your future use, meaning that loans, mortgages, credit cards will be reported. If you have many types of the same credit, this can impact by 5%.

3. How can you rebuild your credit?
You would need to get credit reported, you can start by getting a secured credit card through a credit union or there are also credit builder loans that you can qualify for.

4. Does it affect my credit if I close a credit card?
If you have several credit cards it should not affect your credit but if you only have one, it will so keep that open, just try to use it for low amounts, when you know you can make the payments.

5. If I get married, does it affect my credit?
No, since you have different credit files it keeps it separate, unless you have a joint credit and your spouse has poor credit, this can affect terms or rates.

6. Is a credit card needed to improve credit score?
No, there are other ways to improve it, like other types of loans or lines of credit, a secured line of credit, savings loan, etc. Just make your payments on time so you can see the score go up.

7. Is there a good amount of credit cards to have?
Not really, but instead of having a few credit cards, look for the total amount of credit you can use versus what you can pay on time. The usage percentage is what matters.

8. Can collection agencies collect an old debt?
Depending on the state, there is a statute of limitation on debt collection, if not expired, old debt can be negotiated so you can pay less than what you owe.

9. Can I pay a loan early?
Most loans can be paid early, if they do not allow prepayment and you still want to prepay it doesn’t hurt your credit that much. 

10. Does cosign a loan impact credit?
Yes, your credit will be affected either positively or negatively depending on the activity on the loan.

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