Depending on what high school you went to you may or may not have taken a class in personal finance. Not to worry – whatever questions you may have, Kansas City Credit Union is here to help you make the best possible decisions for you future – we want nothing more than to guide and support you on your path to financial wellbeing and success.
What is Credit?
Credit is essentially your financial reputation. Credit is used to dictate if you get a loan, what kind of loan you will get, and what interest rates you will receive. Banks and financial institutions are not the only ones who check your credit however – utility companies, insurance, even landlords and cell phone companies may examine your credit.
These businesses, financial institutions and lenders use your credit to understand how risky business with you is. Will you make payments? Will you pay on time? These companies and individuals want to know if they should lend you money or if you’re too risky ( aka not going to pay their money back).
What is your Credit Score?
Your credit score is a grade on where your credit stands – it’s the assessment and “grade” of your financial reputation. Credit score is based on your past payment history, your credit “age,” your credit types, total accounts, and credit utilization. Your credit score is basically calculated based on how long you’ve had credit, how much you’ve used that credit, and if you’ve paid it back responsibly and in a timely manner.
How to Build Your Credit Score
As a college student you may be building this credit score from scratch; however, these tips are also helpful to anyone looking to boost their credit score.
Have more questions about your credit? Whether you’re a college student wondering how to apply for a credit card or a post-grad individual looking to boost to your current low credit score – Kansas City Credit Union has the answers! Contact us today for more information! We can’t wait to help you on your journey to financial freedom!
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