Hello! Welcome to our new web series “CU Walk the Money Talk” where the credit union’s very own, Ashley Scroggins and Lori Hudson discuss personal finance topics that make it easier to digest (and yes fun!). We hope you enjoy our series and make sure to subscribe to get updates when new videos are posted. Enjoy!
You’ve likely heard about credit scores before (thanks to all those commercials with terrible jingles), but what do you actually know about them? How long have they been around? And what’s the deal with checking them?
The credit scoring system that we’re familiar with today has been around since the 1980s. Before then, there was no standardized way to measure creditworthiness, so it was up to individual lenders to make judgment calls on whether or not to loan money to someone. The old system was time-consuming, inconsistent and quite biased, so a credit scoring system was introduced.
When credit scores were first introduced, they were used primarily for loaning money. Today, credit scores have much more pull, and that’s why it’s important to understand how they’re calculated. Your monthly car payments, your ability to snag that sweet apartment and even the hiring manager’s decision on that new job you applied for can all be influenced by your credit score.
Watch Ashley and Lori dig deep to better explain what makes up your credit score and how to improve it in the latest episode of CU Walk the Money Talk:
Curious about your credit report?
You are entitled to one free credit report per year from each of the major credit bureaus. Spacing out your credit report requests allows you to check on your credit every four months or so. Request yours online by visiting annualcreditreport.com.
If you have a Choice Checking Account at the credit union, you can request a free, updated credit report every 90 days or upon receipt of alert within e-Club (Registration and activation at our e-Club site required.). Each new report includes an updated single bureau credit score. >>Learn more about the benefits of Choice Checking
Some commercials make it seem like credit scores are big, mysterious, randomly assigned numbers. But with a little research, a little patience and some good habits, you can influence your credit score in a positive way and not be caught off guard by a denied loan or an outrageous interest rate. If you want to review your credit report with a financial advisor, contact Member Services and get a personalize strategy to improve your score today!
