Your credit matters. How you manage your money today will impact your credit history and financial future. In Real Estate transactions, a

credit score is more than just a number. It enables the lender to determine your responsibility & credibility as a borrower. Additionally, it functions as a predictor of your likelihood of repaying the debt.  The higher your credit score, the less risk you pose to the lender. The loan amount, interest rate, and terms that the lender can offer to you as the borrower will depend on your credit score. The amount of the down payment required before your loan is authorized will also depend on your credit score. In addition, your credit score serves as an indicator of the probability and likelihood of you repaying the loan.

But, before you can begin to use credit wisely, you will need to establish your credit. Here are some pointers to get you started creating a positive credit history:

• Open checking and savings accounts. Deposit money on a regular basis, never bounce checks, and maintain a level above the minimum when you open a checking and savings account.

• Manage your credit cards responsibly. Credit cards are convenient and simple to use so make sure you use them wisely. If you allow your credit cards to reach high balances, continue to use them with unpaid balances, or only pay the minimum amount due, they can cost you hundreds of dollars in interest and lower your credit score. On the other hand, if you pay them on time each month and in full, credits cards can assist you in developing excellent credit.

• Honor your promise to pay. It's crucial that you honor your promise to repay loans or credit cards on time and in the amounts scheduled. Contact your lender or creditor immediately if you are having trouble making payments, as they may be able to offer a re-payment plan or help to lower your mandatory monthly payment.

It is crucial to maintain a high credit score for reasons other than just buying, renting or investing in Real Estate. Your credit score is used by organizations such as banks and utility companies to evaluate the size of the credit line they can offer. These organizations can also deny you of credit if your score is too low, or you have a history of missed payments or late payments. The reality is your credit score affects your finances and therefore has an impact on everything in life. Simple steps you can take to keep your credit score in good standing include staying within your credit limit and avoiding missed payments.