After graduation from school, your credit score will be the most important grade you will care deeply about. This three-digit credit score indicates your level of how well (or how poorly) you’ve done with credit. Similar to your academic grade, it is very crucial for your financial future.
Ten points are relevant to understanding, building, and maintaining a good credit score:
1. It serves as a loan qualifying factor to decide whether you qualify for a loan or not.
Whether, you are looking to get a car, home, or personal loan, banks and lenders will check your credit score first. It is also a factor when applying for a credit card.
2. The interest rates depend on your credit score
A bad credit score can be costly since many financial institutions charge high interest to borrowers they view as risky. However, a high credit score can help you score the best interest rates, hence saving you some serious cash.
3. Your Credit score is made up of your credit reports
There are three trustworthy credit bureaus; Experian, Equifax, and TransUnion, and you have only one credit report from each of them. Your credit score is calculated based on the information figure in the credit reports provided by these bureaus. Various information will be mentioned, such as credit card under your name, address, student loan payments ..etc.
According to federal law, you have the right to get your credit score report for free once a year or you can head to: AnnualCreditReport.com every four months.