As adults, our credit score has a big influence on the major life purchases that we make. From buying home appliances to qualifying for a loan, this score determines what we can and cannot get. The tricky part about credit is knowing what exactly credit is and how it works!
Credit is defined as a number that depicts an individual's creditworthiness and scores range from 300 to 850. The credit score is based on a proprietary formula that is calculated off of things such as open accounts, repayment history, current debt, and more. The higher the score, better offers and opportunities are given to the individual. If one has a lower score, these offers and opportunities start to dwindle (and one might not even qualify)!
How does one navigate through credit/credit scores to make sure they get the best score they can? We are here to provide you with the credit score basics that you need to know!
For our long form video this month, we are going over the credit score basics! Ronnie covers everything that you need to know about credit and its relationship with the mortgage process. We also provide tips to help you raise your credit score! In a matter of minutes, you will have a better understanding of credit and how it functions!