Credit Score

- Tells potential lenders how desirable you are for being lent money, like a record 

of responsibility.

- Why it Matters: Your credit score has effects on many things like interest rates, car insurance premiums, car loan payments, rent, any general loans, your mortgage, your ability to get student loans

Credit Score: A number that represents how good you are with money. A credit score is a three-digit number, typically between 300 and 850, designed to represent your credit risk, or the likelihood you will pay your bills on time.  Higher scores mean you have demonstrated responsible credit behavior in the past, which may make potential lenders and creditors more confident when evaluating a request for a loan.

• The FICO credit system decides how the things on your credit record affect your credit score 

  • Payment history, credit to debt ratio (amount owed), stable work history, opening a new credit card which runs a hard inquiry to view your credit report (gives a negative impact on credit score), and credit card usage.

• Really bad incidents can negatively impact your score for upwards of 7 years, for example

  • Walking away from a mortgage, not paying off a loan, being in credit card debt, or lease agreements that fall through.

• Credit Score Range: your credit score can range from 300 to  850 with different categories for each credit score range. 

  • Build good credit by making accurate and reliable payments on any money commitments​

  • If you want to check your score without running a hard inquiry and shrinking it, use credit karma