Credit Score 101

Here is everything you’d ever need to know about your credit score and how to get yours to 850!

What is a Credit Score?

Your credit score is a three digit number ranging from 300 to 850 which represents all of your previous financial decisions and how trust worthy you are at repaying money. The higher the number the more trustworthy you are to banks.

Why do I need a high Credit Score?

If you ever plan on buying a car, house, opening a credit card, or a business. having a good credit plays a critical role in the amount you pay, and likeliness of you getting approved. The lower your credit score = the higher the interest your going to pay on that loan. Not only will you pay more, but this can also affect your ability to be approved.

Rent Applications

Having a low credit score can also impact your ability to be approved to rent. If your credit score is too low many landlords won’t accept your application because it shows you are un trustworthy and might not be able to make your payments.

Get yours to 850

Before we can get your credit score to 850 we first need to understand what makes up a credit score which I highlighted below.

Summary

So from this we can see the two most import things you can do right now is to NEVER miss a payment and also having a low credit utilization. Meaning if you have a 10,000 limit and of that you use 8,000 you have a 80% utilization. The general rule of thumb is to be below 10%. Along with not closing your credit cards unless necessary, doing this will decrease your length of credit history.