This week’s financial infographic lays out the key steps needed to build your credit score. Whether or not you agree with how the score is calculated or the impact it has on so many aspects of your life, you can’t deny that a great score will save you tons of money. Having a high score allows you to secure a lower interest rate on all kinds of loans including home, auto, educational, business, etc.
That three digit number can affect more than just the amount you pay in interest. Having a bad score attached to you can prevent you from obtaining your dream job. Yes, many companies these days are using the credit score to “judge” your worthiness. Potential employers feel that your score accurately measures you level of responsibility. There are always exceptions to the rule, but when you think about, it makes sense.
This infographic points out that there are three credit reporting agencies and each one charges a certain amount to access your report. What it does not mention though, is that there is a great way to pull your credit score for free by signing up at Credit Karma. Credit Karma only displays a score from one of the agencies, but it’s a great tool to have before you try to secure a loan or land that job you have your eye on.
READERS: How do you feel about the importance of your credit score? What do you think about the steps in this infographic? Any that you would add or remove?
The importance of an installment loan can’t be overlooked – that was actually my first piece of “credit history” (my student loans), and the one I most recently paid off (about a month or so ago).
Installment loans are great for a couple of reasons. They don’t affect your credit as negatively as open credit lines and you don’t have the ability to run up the balance. I would agree that they’re great ways to build credit.
Great info-graphic. Definitely would help people having to recover from debt!
Love the info-graphic. I will be sharing this in one of my Facebook groups. We always have posts about how to build credit. Thanks!
Awesome info-graphic! Great overview of what’s involved in the credit repair process. This really simplifies what can be a very complicated subject.