We know a lot of things compete for college students’ attention. Finishing assignments, passing exams, seeing friends, looking for jobs or internships… the list goes on and on. While these are all important things to focus on, learning about credit is crucial for your future success, as well.
Many potential lenders, employers and landlords will check your credit to decide if you’re a qualified borrower, employee or tenant. If you don’t know much about it, you may just cross your fingers and hope for the best when someone asks to check your credit. However, with so many important things riding on it, it’s much better to get informed now.
One commonly used item to determine someone’s creditworthiness is their credit score. A credit score is a three-digit number that allows inquirers to quickly compare you against others. There are many different scoring models, so what a “good” score is can vary between each one. In general, a higher score reflects better credit. The five components of a credit score are listed below.
The most important thing to remember is that what you do now will impact your credit score both now and in the future. Based on your financial choices, it will become easier or harder for you to reach your future goals, so take the time to get informed and choose wisely.
Find more money management tips and resources on our WalletWorks page.