Introduction to Credit Scores

In a separate module entitled Debt Management, we discussed the positive and negative affects of having loans. How well you handle those loans will ultimately determine your credit score and how much money lenders may be willing to loan you and what interest rate they will charge you for key purchases like a house or car.

If someone you didn't know asked to borrow an amount of money, how would you know whether to trust that person or not? A credit score is the number value attached to how trustworthy you are as an investment from a lender.

If you're not sure what any of that really means, you're in the right place.  Through this module, we plan to give you enough information so that you can understand the importance of your credit score and be empowered to begin building a strong score that will benefit you for years to come.

In this module, we'll go over the basics so you can make educated financial decisions with a good idea of how they might affect your credit. 

 

Next Chapter: What Are Reporting Agencies?

 

All Chapters:

[Chapter 1]: What Are Reporting Agencies?

[Chapter 2]: What Determines My Credit Score?

[Chapter 3]: What Can Hurt My Credit Score?

[Chapter 4]: What Won't Affect My Credit Score?

[Chapter 5]: How Do I Manage My Credit Score?