** lower monthly payments can and often do mean a longer loan repayment term

** you will end up paying more in interest and more for the total cost of the car

Monthly Payment

** Focusing on the total cost can save you overall, but your monthly payments will be higher

** you will pay less in interest over the term of the loan

Total Cost

It is recommended that you do not use more than 30% of your credit card limit.

30%

As long as you do not have debt, you will have a high credit
score.

** credit score based on other factors, too, such as payment history, types of credit, etc.

** No debt = low to no credit history.

** you need debt to build your credit

The only way to improve your credit score is to pay off your entire balance every
month.

● It will help to pay

off every month

but it’s not

necessary

● Make payments on

time, reduce debt,

remove errors

You can eliminate negative parts of your credit report by closing
accounts that are overdue.

● Closing account doesn’t

erase late payments

reported on credit

report

● It negatively affects

credit score because

credit history shortens

Using your debit card responsibly will increase your credit score slightly, but less
than using a credit card will.

● Debit cards have no

effect on your credit

score.

Applying for a new credit card will hurt your score significantly.

** It may hurt your score a little, but it can also lower your credit utilization, which can in turn improve your credit score.

** Applying for too many cards in a short period of time can do more significant damage to your credit.

Missing your payment will automatically affect your credit score.

** It might, but credit card companies usually do not report late payments until they are 30 days late, but pay on time so you don't have to worry about this.

It takes time, patience, and a great deal of responsibility to build our
credit.

Thank you and good luck on your credit journey!