Credit Score Part 2

Who actually decides your credit? Credit bureaus! There are three credit bureaus, Equifax, Transunion & Experian 🏦

There are also credit rating companies like FICO, which calculate your credit score based on the information from those three bureaus 💳

So, let’s say that you get a credit card but you’re late on payments

The credit card company will report that to the credit bureaus, which in turn will have a negative impact on your credit score 😳

Why is credit important? A lower credit score makes you ineligible for discounts, certain healthcare plans and even loans 📉

It’s possible that a bank will loan you money with a lower credit score, however because of that, they would charge you more interest as they are worried you are irresponsible 🤔

This ends up meaning that you owe the lender substantially more than the original loan amount

Compare this to having a high credit score, where the lender would actually loan you more money, at a much lower rate 🤯

Anything below 670 is typically considered a bad credit score, while anything above 670 is good 📈