Credit Score 101: Understanding what it is and how it affects you

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In our credit card based society, where the average american household carries $137,063 worth of debt, your credit score affects every aspect of your financial life. But what is a credit score? How is calculated? How can we improve our credit score? And what are the myths many of us still believe about credit scores? 

The Seton Center’s upcoming Credit Cafe on November 6th 4:30-6pm has all the answers. We will have one-on-one appointments with credit advisors for those who RSVP in advance. They will have your credit report to confirm with you that everything on the report is true. There will also be a Mastering Your Credit workshop. But until then, here’s a quick guide to credit.

Let’s start with what is a credit report. According to Freddie Mac, “Your credit report is a record of money you’ve borrowed, your history of paying it back and how much open credit is available to you.” Your credit score is a numerical value representing your financial risk to a lender and it is based on the information in your credit report. It is what lenders typically rely on when determining whether to extend something to you on credit or loan, or at what interest rate. Because of this, it’s important that your credit report is 100% accurate.

If you’re not sure how to find your credit report, the Seton Center offers at the Credit Cafe one-on-one credit report check-ins when your RSVP. Our credit experts will pull up your credit report with no cost to you. To register contact Lacy Ames at (301)-788-0239 [email protected] or Kelly Overholtzer at (301)-447-6102 x17 Kelly.Overholtzer@doc.org, or register on our Events page.