Your credit score is a three-digit number that is calculated according to your credit history, including the types of credit based accounts you own, how long you have been managing those accounts, and whether you make your payments on time.
If you’ve ever applied for a loan, tried to open a new credit card account, considered refinancing your mortgage, or even applied for an auto insurance policy, you’ve at least been exposed to the power that your credit score can hold. But how exactly did the concept of credit scores begin and how have credit scores changed over time, finally evolving into the products they are today?
Whether you’re looking to buy a home or car, take out a loan, open a credit card account, or even purchase a new auto insurance policy, your credit score will likely come into play. This three-digit number is calculated based on a variety of financial factors, and can influence whether a lender or creditor is willing to work with you.
There are many instances in life when your credit health gets examined. For better or worse, your credit score (and even credit history) can play a huge factor in achieving many of life’s goals.
It’s no secret that your credit history and score play an important role in your financial life. Your credit can both open doors for you and close them, depending on whether or not you have built a strong history over the years.
Does age have an impact on credit scores? The short answer is yes. Data shows that different generations have distinct credit scores. Individual credit scores are used by financial institutions and lenders to determine eligibility for favorable rates and terms for financial products and services. For example, a higher credit score typically earns borrowers lower rates on personal loans.
In collaboration with Money Lion - These days, consumers have relatively easy access to their credit scores thanks to a wealth of online services. Knowing your credit score is important, because it sets expectations for the type of financial products (e.g., credit cards, loans) that you’ll be best suited to apply for, and it factors into other important life needs (e.g., finding a job, buying/renting a home).
Our service is free and will NOT affect your credit scoreGet Started