- I realized I wrote an entire segment on getting a credit card, and even mentioned credit score... but did not explain it.
- Also, if you are abreast of current events, you may have heard that one of the big 3 credit agencies, Equifax really screwed the pooch. 143 million pooches.
1. What is a Credit Score?
Well there are these things called credit reports, these reports keep track of:
- Payment history
- Total amount owed
- Length of credit history
- Types of credit
- New credit
In a nutshell, did you pay back your debt on time? This could mean student loans, cards, anything where you have accrued debt.
From these reports, you get a Credit Score, calculated similar to how you'd get a GPA.
2. Who Does All This?
The big three: Experian, Transunion and Equifax
- These are United States credit agencies that do our credit reporting
- Do they all calculate it exactly the same? No, but, pretty much
3. What is a "Good Score"?
- Excellent: 750 and above
- Good: 700 to 749
- Fair: 650 to 699
- Poor: 550 to 649
- Bad: 550 and below
4. What Happened with Equifax?
- One of the big three, Equifax, was hacked in July 2017 potentially exposing the data of 143 million Americans. Yes, the people who have your entire history, were hacked-
- Equifax has not be clear about next steps and isn't giving much consumers to go on
- Best Advice: call each of the big 3 and ask them TO FREEZE YOUR CREDIT
- Freezing your credit will ensure that someone with your stolen information can't take out a loan or get a mortgage in your name (or any other crazy shit!)
5. How do I get my Credit Score?
- You can request a free credit report from the big three once per year
Questions? Please comment.
