A credit score can be two daunting words for those who do not understand what it means and the power behind it. The process of knowing and maintaining your score at an appropriate number can seem overwhelming when faced with financial challenges. It is important to understand all aspects of your credit score to be able to make smart financial decisions in the future.


What Is It?

It is a three digit number, created by your credit reports, that represents your responsibility with borrowed money.A person’s credit score can be described as a number that represents your past record with how you manage money, like a driving record. It takes years to build your financial reputation and credibility. Everyone fears having a bad credit score because it is synonymous with being unable to afford to buy a home, an apartment, or a car.

The different ranges of credit scores can go from “bad” to “excellent” when looking at the three-digit-number. A bad credit score is defined by anything below 600 and an excellent credit score is anything above 750.


Why Should I Care?

A credit score is a deciding factor if you will be approved for a mortgage or a car loan. It allows you to move forward in your life to buy an apartment, a new car, or starting a family. Many find that their credit score is not of value until it stops them from moving forward with managing large amounts of money. Your score health can be compared to your own health. Regular checkups with a doctor are ideal rather than ignoring symptoms and waiting until you are in complete poor health.


How Do I Improve It?

There are many companies that work to help you build your credit score. Many you have heard their commercials repeatedly on the television. The first step would be to know your credit status and where it falls on the credit scale. You can do this by signing up for a Credit Karma account. Once you know your score, the next step would be finding the steps and resources to the make your number higher.