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.

Insurance; is it worth the money?

WHY, AND WHAT INSURANCE TO GET

Insurance is a necessary evil in today's society. If you were unfortunately robbed or involved in an accident, could you afford to replace all your lost or damaged items?

Insurance is to protect you if something bad happens. That being said, finding the right insurance may be difficult, so here’s what insurance you’ll need for what, what to look for in your insurance and why you want it.

RENTER’S INSURANCE

Anyone that’s going to rent an apartment or house NEEDS renter’s insurance. This’ll protect all of the stuff in your apartment/home in the event of a robbery or if they’re damaged. On top of this, you’ll probably need other types of insurance for things like natural disasters, but this really only applies if you own your home. Homeowners insurance is practically the same thing, just for a house.

More Information

HEALTH INSURANCE

Health insurance is what saves you when you get your medical bill. Nowadays you can stay on your parent’s health insurance until you’re 26, so it shouldn’t be of concern for most of you quite yet. If that doesn’t quite work out, then colleges often have their own health insurance programs and there is also always government-funded health insurance. Keep in mind that this only goes for people in America, since other countries have different systems it may be different, depending on where you live.

More Information

CAR INSURANCE

There are lots of different types of car insurance which may or may not be needed, based on your situation. First off is liability insurance, which protects other people’s things and health in the event of a car crash you caused. Then there’s personal injury protection (you can figure that one out on your own), collision insurance which protects YOUR car and things in the event of a car crash. Then there’s comprehensive insurance which protects you from “Acts of God” (so if lightning strikes your car or a tree falls on it, you’re covered). Finally, you have uninsured insurance which is an oxymoron that protects you from people who are lacking liability insurance.


More Information

WHAT TO LOOK FOR IN INSURANCE

LOW PREMIUMS

Your premium is kind of like your bill. Always look for an affordable premium alongside a good insurance policy (a good insurance policy for you, everyone needs different things covered remember, that part is up to you) or you’ll go broke.

LOW DEDUCTIBLE

Let’s say you go to the hospital and come out with a $1000 medical bill. Now let’s say you have a deductible of $500, this means that once you pay the first $500, the insurance company will cover the rest.

Keep in mind, low deductibles typically mean higher premiums and the same for the other way around.

COPAY

Your copay is a percentage of your medical bill that you have to pay. Typically it isn’t all that expensive, but everything can add up easily.