CREDIT SCORE 101
Let's talk about credit scores ↓
A credit score represents how reliable you are and your likelihood to repay borrowed money // are you a good or bad candidate?! This will also play into your interest rate terms.
Did you know there are multiple factors that play into your credit score? Swipe to see what makes up your credit score by percentage!
Do you know your credit score? If not, check! It won't hurt it, that's a myth.
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A credit score is a three-digit number that significantly impacts your financial health. It ranges from 300 to 850, with higher scores representing better creditworthiness. Understanding credit scores involves knowing the key factors that contribute to this score: payment history (35%), credit utilization (30%), credit age (15%), types of credit (10%), and inquiries (10%). To maintain a healthy credit score, make timely payments on any loans or credit cards, keep your credit utilization below 30%, and avoid opening too many new accounts in a short time. Regularly checking your credit score is vital; many people believe doing so can negatively impact their score, but this is a myth. Importantly, when you check your score through your bank or a credit reporting agency, it's considered a soft inquiry and doesn't affect your rating. If you're curious about improving your credit score, consider tools such as credit monitoring services that alert you to changes in your credit report, enabling proactive management. It's also wise to familiarize yourself with the credit reporting agencies: Experian, TransUnion, and Equifax, as they each may have different information about your credit profile. Utilizing credit responsibly not only aids in securing loans with favorable interest rates but also enhances your overall financial literacy.
