Your credit score may seem like an ambiguous number, but it provides financial institutions and other companies with a snapshot of how “creditworthy” you are. When you use credit, companies report your activity to credit bureaus who keep records of your history. This history is called your credit report. Your credit report is summarized by a scoring model to give you a credit score which usually ranges from 300-850. If you have a higher score, you’re more likely to get approved for a loan or a credit card, plus more likely to get a lower interest rate, saving you money when you borrow.
Want to see your report? All three credit bureaus opened up free weekly credit report access to everyone. Now is a great time to take control of your credit. You may be using some added debt to get by. Find out how to maintain good credit standing along the way.
CCOA also has a 5-minute lesson to help you learn more about how credit scores may impact your financial life, and get more information on:
- Checking and monitoring your credit
- How to improve your credit score
- Types of institutions and companies that may use your credit score