Ever heard of a 'credit score' and thought, “Huh?!” 🤔 We feel ya.
Let's talk about what they are, when they really start to matter, and how to keep yours shining bright like a diamond. 💎
What's a credit report or score anyway?
Think of a credit report as your financial report card. Instead of grades on math, it’s a number that shows how good you are with money.
“A credit report is a report card on your credit history. A credit score shows how good you are at paying your debt and borrowing,” Katie Bruno, a Financial Advisor with Morey & Quinn Wealth Partners. “It has nothing to do with your net worth or bank account balance... people glamorize having high credit scores. The reality is someone with $0 in the bank can have a higher credit score than someone with $1,000 in the bank.”
Why should I care? 🤷♀️
Ever dreamt of buying a cute car? Your credit score can be the magic key! A better score can lead to better loan deals and lower interest rates. “Wait so your credit can help you get better deals on your loan?” asked Katrina Vega, 17.
Yes, it’s like the difference between bagging VIP concert tickets and sitting waaay at the back.
“It is important for teen girls to learn now about credit and how to use it,” Bruno said. “When and if used appropriately, credit can be a useful tool to help achieve financial goals, such as purchasing a home or starting a business.”
Got it! How do I keep it sparkling? 💎
Pay bills on time: Just like handing in homework, punctuality is 🔑.
Don’t borrow more than you can handle: It’s like agreeing to 5 sleepovers in one weekend – overwhelming!
Check your credit report: Look for mistakes like that time they got your latte order wrong. If something's off, speak up!
Remember, your credit score isn't about how much money you have but how responsible you are with it.
- Story by Josefina Loza, read more about her by clicking here.