Crash Course: Credit Score
Clueless about credit? Not to worry, by the end of this course you'll be a pro. Get all the tools you need to build an impressive credit score to qualify for loans, credit cards, mortgages and even jobs.
In this course, we'll cover how to:
1️⃣ Find and understand your credit score
2️⃣ Fix & grow your credit score
3️⃣ Pick & qualify for a credit card
4️⃣ Make the most of credit card perks
Video 1 - What is a credit score
A credit score, ranging from 300 to 850, indicates your ability to repay loans. It’s used by banks, landlords, and employers. A poor score can have negative consequences such as higher interest rates and difficulty in securing loans, insurance, and even jobs. Building a good credit score is essential for financial stability.
Video 2 - Where to find your credit score?
Checking your credit score is free and easy. Banks offer free credit checks via their web portals, and you can get a free annual credit report. Various tools like Credit Karma, Credit Sesame, and WalletHub provide different benefits, from personalized tips to credit alerts. Choose the one that suits your needs. Remember, checking your score doesn’t affect it, but applying for loans can.
Video 3 - What does your score mean?
Credit scores range from 300 to 850, with scores below 580 considered bad and those above 800 deemed excellent. There are many different factors that make up your score, with late payments, your credit history, and your credit usage being the primary influences. Other factors include total account balances, credit checks, and available credit.
Video 4 - How to grow your credit score?
Growing your credit score takes time and effort. Start by getting a credit card and setting up automatic payments to avoid missing any. Pay off your debts, focusing on the highest interest rates first. Avoid missing payments and accumulating too much debt, as these can severely impact your score.
Video 5 - Picking a credit card
When using a credit card, you will receive monthly statements detailing your spending, minimum payment, and due date. Any amounts that you do not pay off by the due date begin to accrue interest. Managing different types of debt responsibly is beneficial, as creditors prefer borrowers who can handle multiple debts and repay them on time.
Video 6 - Repaying your credit card
Credit card issuers require specific credit scores. Higher scores mean better cards with lower interest rates and better perks. If you have no or low credit, student or secured credit cards are easier to qualify for to help you build your score. For those with okay or good credit, choose cards based on perks and spending patterns. If your income is irregular, opt for cards with the lowest interest rates to minimize penalties for missed payments.
Video 7 - Credit card perks
The best advantage of having a credit card is the perks, which are the rewards you earn for each dollar spent. Ideally, you would want to choose a card that offers rewards in the categories you spend the most on. These rewards can be redeemed through your credit card’s portal.
