What you should know about your credit score

YOUR CREDIT SCORE, ALTHOUGH IMPORTANT, IS OVERLY COMPLICATED

Your credit score is used in almost anything important. It shows landlords, car dealerships, banks, etc. how reliable you are in your finances (especially when it comes to loans). If you have a poor credit score, you typically need references (people who can vouch for you in your situation like a previous landlord) for you to accomplish anything so don’t mess this up, please.

WHERE IT COMES FROM

3 companies determine your credit score: Equifax, Experian, and TransUnion. There are lots of things that go into a FICO score (the most typical credit score used), but it’s based on your payment history, the amount of money you owe, the length of your credit history, the types of credit you’ve used, and how often you look for more credit.

WHEN TO CHECK YOUR SCORE

Every year you get a chance to check your credit score ONCE, at least for your exact number from each company, but you can also use things like Credit Karma for your score. Keep in mind that there are two types of inquiries (when you ask to see your credit score): a hard inquiry (which will lower your credit score) is when someone checks your credit score when they’re trying to extend your credit, a soft inquiry is you personally checking or someone pre-checking it for a job and won’t hurt your score at all.

HOW TO GET A SOLID CREDIT SCORE

Alright so first of all, you need to be paying bills on time. Next on the list is to keep your credit card spending low and make sure you’re paying off any debts you have. Next up is to not keep getting new credit cards because of the hard inquiries necessary to do so, but don’t close credit card accounts either (unless it’s a card that has a fee) since it’ll make you seem like you’re using less credit than you’re being given which is a good thing.