What Is A Credit Score?

You don’t want to live on your mom’s couch for the rest of your life, so you’ll need to get a good credit score to get a place of your own. It’s time to buckle down and begin building your credit so you don’t have to rely on your mom’s.

girl on couch

A good credit score can help you get the keys to your apartment, your next car and, in the long-run, your dream home. Your bank, a department store or even a landlord checks your credit score to determine whether you are fiscally responsible to borrow money or pay your rent. The higher the credit score the more “credit worthy” you are deemed.

Your bank, a department store or even a landlord check your credit score to determine whether you are fiscally responsible to borrow money or pay your rent. The higher the credit score the more “credit worthy” you are deemed. A good score can result in a lower interest rate on a car loan, a mortgage or a sweet apartment.

A credit score illustrates your worthiness to lenders based on your credit history. History can include a school loan, credit card, car loan or even insurance. The scores are provided by three credit reporting companies (Equifax, TransUnion, Experian). Initially, when you don’t have any credit, a good way to begin building it is to get a credit card and pay off the balance each month. This way at least you are beginning to show you can make payments on-time without having to pay any interest.

So, even though living at home might come with a free laundry service, I think getting a low rate on a loan may trump it any day.


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