A credit score is how your lenders rate how good you are – usually on a scale of 300-850 – at managing money. And it pays to have a high score.
Slightly different depending on the credit scoring model. The two major scoring methods are FICO (the most popular) and VantageScore. Both go up to 850, but FICO says “good” is at least 670. VantageScore says 661 is the magic number.
Typically, higher scores means lenders are more likely to give you lower interest rates on future loans. Because they think they can trust you to repay your debt. Lower interest rates means you’ll pay less over time. Cha-ching.
While you’re at it, check out your credit report (which is basically the written-out version of your credit score) for free through AnnualCreditReport.com.
Here’s your checklist:
Your lenders are judging you, and it pays to impress...by paying on time, keeping debt in check, and fixing any mistakes you see.
We partnered with John Hancock to bring you a webinar that’s all about the B word...that’s right, we’re talking budget.
Know a 1040 from a 1099 and your W-2 from your W-4. Because you're an adult.
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