I cannot truly remember the last time I used cash to pay at the grocery store. Can you?

With our world going digital and credit cards and digital wallets being accepted almost everywhere it is more important than ever to keep your credit score in a healthy place.

It took me a while to fully comprehend that every action has a consequence, duh right? Every time I said yes to another store credit card or forgot to pay in time a balance it affected me much more than I knew then. Everything you do with your money gets reported and monitored by the three big credit bureaus: Experian, Equifax and TransUnion. These three document on their own your credit history and then grade it based on a scale of 300-850 being anything over 670 good. Based on your overall grade, lenders decide how risky you are and affect your loan approvals, insurance premiums, interest rates and anything that basically revolves around money. The most common score is a FICO score but beware, you will be having different scores depending on who did the monitoring.

There is a good and a bad thing. The bad thing is that there are 5 factors that can affect your credit score. The good? You have 5 chances to improve your score.

Payment history, utilization, length of credit history, new credit inquiries and types of credit are what makes up your score. It is really important to understand what they are and how to improve them but most importantly you need to monitor them.

Building up credit takes time. Cleaning credit mistakes takes even more time. Be mindful of your choices in the present because they will for sure affect your future.

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