College and Credit Score 101 – What’s a Credit Score and Why it Matters

Your credit score is important, and depending on your score, life can be negatively or positively impacted in many ways, like getting approved for credit cards, renting an apartment, having utilities in your name, and even getting that dream job.

So, let’s start building your credit knowledge with Credit Score 101 – what’s a credit score and why it matters.

What is a credit score:

Your credit score reflects the information found in your credit report and is used to determine your creditworthiness. Basically, it tells lenders how likely you are to default on an obligation. For example, Vantage 3.0 and FICO use a scale of 300 to 850, with 850 being the lowest risk for default and 300 being the highest.

What is a good credit score:

Credit scores range from 300 to 850, and the higher the score, the better.  While no formal definition of a “good” credit score exists, generally, a minimum credit score of 680 is considered good.

Why your credit score is important:

Credit scores are used in almost every part of our lives, from credit cards and loan applications to employment opportunities. If you have a good credit score, then you will have access to more financial products, lower interest rates, and better terms.

Did you know that if you’re renting while in college, you can start building and improving your score today? Solutions like RentReporters can help you get there, and the process is simple – you sign up, and we verify your rent payments and report them to TransUnion. Your score can then increase in 15 days!

 

For more information on RentReporters, visit here.

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