Welcome to the month of August. Parents, enjoy your last days of no school with your kids. Soon, you will be making lunches, taking them to school, helping with homework (or at least trying. I don’t know if I am smarter than a third grader anymore), and dealing with school activities.

You are about to get a lesson in credit here. Everytime you apply for a credit card or a loan, your credit score gets affected. Although it is minimal, it still makes a difference. There is no point to keep lowering it when you are trying to build it up. This will make a big difference when you don’t have a lot of credit.

If you haven’t established your credit, it can make a big difference. If you are trying to establish credit, get a credit card. Pay on time for two to three months. If you are looking to build, get another card. If you do this for a year, you will have your credit built up with 4 or 5 cards. Just remember to keep the balance low and pay it on time every month. Only charge what you can pay.

Next time we will talk about the difference between a secured card and an unsecured card. Have a great weekend and enjoy your family. Second Chance Financial Inc.