Whether you’re a student preparing to take on new financial responsibilities or a parent teaching your child about managing money, understanding your credit score is essential. Your credit score isn’t just a number—it’s a key factor that can impact your financial future in ways you may not realize.
From renting a place to live to securing a job, your score plays a significant role in your everyday opportunities. Here’s why staying on top of it is crucial and how you can stay informed.
How Your Credit Score Affects Your Life
Renting Options
- Planning to rent a home or lease a car? Landlords and leasing companies often check your credit score to determine your reliability as a renter. A low score may limit your options or require you to pay a higher deposit.
Loan Benefits
- Your score directly affects your eligibility for loans and credit cards. A higher score can help you secure lower interest rates, which reduces your monthly payments and saves money over time.
Job Opportunities
- Some employers include credit checks as part of their hiring process, especially for positions that require managing sensitive information. A solid credit history could make a difference when pursuing certain job opportunities.
How To Stay On Top Of Your Credit Score
You can request a copy of your annual credit report in 1 of 3 ways:
- Online: visit http://www.annualcreditreport.com/
- By phone: call 877-322-8228
- By mail: print a request form and mail it to the address listed on the form
Review these four key areas of your credit report for accuracy:
- Personal Information: Your name, address history, social security number, date of birth and employment history.
- Credit History: This is the largest section of your credit report and will contain information on all the credit accounts you’ve either opened or co-signed for, including accounts you have closed.
- Credit Report Inquiries: Whenever someone inquiries about your credit, such as a landlord, lender, or insurance company, this information is recorded and remains on your report for up to two years.
- Public Records: Any public information, such as bankruptcy, late child support, or unpaid taxes, can stay on your credit report for up to 7 years.
Comb through each of these sections and make sure that all the information is correct. If you need assistance, contact us at UNITE Credit Union. We can assist you in reading your credit report, disputing any items, and provide advice for building or raising your credit score.