Apr 10, 2007

Building Credit

Credit is so important when it comes to buying a home, a car, or getting a loan of any sort with good terms. When we were first starting to build our credit history we had a couple credit cards with a low line of credit and a high interest rate that we used from time to time for emergencies. Within a few years of maintaining good history the offers started rolling in; from interest free credit cards on balance transfers, to 0% credit cards on purchases made in the first year. All seemed like great opportunities, until you read the fine print. Some were 0% for 12 months and then went up to 23.5%, or Prime + 10.95%. Since we were already at a high APR and wanted to switch to a low APR and close out our accounts, we had to carefully compare credit cards to find one that met all our needs. We finally went with a credit card through our bank which offered a higher line of credit, no annual fee, a low APR, and offers once or twice a year for 0% balance transfers which I take advantage of often. Building credit is hard work, but it pays off.

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