Credit Score Breakdown

Posted by Credit Union 1 on Apr 19, 2016 9:25:27 AM
Credit Union 1

You’ve likely heard about credit scores before (thanks to all those commercials with terrible jingles), but what do you actually know about them? How long have they been around? And what’s the deal with checking them?

A credit score is a number (usually between 350 and 800) that represents your credit-worthiness. It’s a standardized measurement that financial institutions and credit card companies use to determine your risk-level when considering issuing a loan or a credit card. Basically, it provides a snap shot of how likely you are to repay your debts on time. Widespread use of credit scores has made credit more widely available and less expensive for many consumers.

Some commercials make it seem like credit scores are big, mysterious, randomly-assigned numbers. But with a little research, a little patience and some good habits, you can influence your credit score in a positive way and not be caught off-guard by a denied loan or an outrageous interest rate.

(click to launch infographic)



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Topics: Financial Fitness, Infographic, It's A Money Thing, Credit