What You Don’t Know About Your Credit Score Will Harm You

Find out what is a credit score, why your credit score is important to you and how you can improve it.  People with low credit scores will have a harder time getting credit and will pay more when they do.  It can also affect other things like getting telephone service, an apartment, or even a job.  Despite its importance, I haven’t discussed it much here on my blog.  However, my new book, Financial Guide to Life, has an entire chapter that summarizes the things you really need to know for your own self-interest.  For busy people, I really like checklists and bullet lists.  Everyone one of my book chapters starts and ends with a bullet summary.  So today, I am going to share the bullet list summary for my credit score chapter as well as the “more information” list to give you the quick facts you should know.

Credit Score Summary Principles

  • Your credit rating is important because it is used by potential lenders to grant you credit, determine how good of an interest rate you will be charged, set your credit limits, and offer credit card rewards and balance transfers. It may also affect such things as auto insurance premiums, telephone contracts, rental applications, and job hunting.
  • Most of your credit score comes from how much of your credit card limits you have used and how well you have paid bills on time.
  • The best way to build a better credit rating is to use multiple credit cards once a month, pay ALL bills on time, and keep any balance under 25-30% of your credit limit.
  • Manage your credit and debts responsibly to develop a high credit score and receive the best credit offers and loan rates. Pay all debts on time, every time.

More Information About Credit Scores

  • https://www.creditkarma.com/ – Get your credit score estimate for free based upon your history from TransUnion, plus other credit resources.
  • http://www.credit.com/ – Get your credit score estimate for free based upon your history from Experian, plus other credit resources.
  • https://www.quizzle.com/ – Get your free credit report and score from Experian combined with an analysis of which items in your report has affected your score.
  • http://www.myfico.com/ – Purchase your actual credit scores.
  • equifax.com – Equifax – one of the big three credit rating companies.
  • experian.com – Experian – one of the big three credit rating companies.
  • transunion.com – TransUnion – one of the big three credit rating companies.


About John Kimball

Over the past few decades, I have experienced most of these financial issues with both mistakes and successes. I sure wish someone had told me these things when I was first starting out. So many times I have cried out, "I want a do over!" when I learned a new financial lesson or tip. I aim to pass along to you the financial insights I have gained from experience, reading, analysis, and living the financial aspects of managing, saving, investing, and spending your money. I am an analyst with a large organization and happily married with two children on their way to an expensive college, no doubt. I read numerous financial blogs, websites, newsletters, magazines, newspapers, and books to bring you the latest news, insights, tips, and lessons combined with decades of experience.

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