Credit Reports and Credit Scores Explained | Credit 101

Описание: Your credit history is an important area of your personal finances. It can cost you thousands of dollars in additional interest due to higher interest rates. This is completely avoidable if you manage your finances correctly.

In this video, I’m breaking down credit and the importance of reviewing your credit for accuracy. By the end of this video, you’ll know the difference between your credit report and credit score.

The first step in understanding your credit is by ordering a credit report. You have the right to obtain a credit report from the three bureaus (Equifax, Experian, & TransUnion) once every year, free of charge. All you need to do to get your free report is go to annualcreditreport.com and complete the request form that includes your name, social security number, and address. You will also have to answer a few questions to verify your identity. Please remember that annualcreditreport.com is the only site authorized by the Federal government to provide your free credit reports.

Your credit score, is different from your credit reports. Your credit report lists all of the details of your credit history. Your credit scores are mathematical formulas that uses the data in your credit report to come up with a numerical score, usually between 300 and 850. There are two main scoring models that are used by creditors, FICO and VantageScore. These scores help lenders to evaluate your credit worthiness quicker and easier than by having to review all of the details in the credit report itself.

The easiest way to make sure that you have good credit is to pay your bills on time, and don’t max out your credit cards...ideally, you should be using no more than 30% of your credit limit. Other ways to ensure good credit is to limit the number of inquiries on your report by limiting how often you apply for credit and don’t close any older credit cards once you pay them off.

We’ll discuss how to clean up your credit and improve your scores in another video. I hope that this overview of understanding your credit report and credit score was helpful.

Follow me on Instagram:
  / ajg_pfme  

Like my page on Facebook:
  / ajgpfme  

Stay Connected on Facebook!
Personal Finance Made Easy Facebook Group
  / 22982.  .

Book Recommendations:
Side Hustle by Chris Guillebeau
https://www.amazon.com/Side-Hustle-Ch...

Rich Dad Poor Dad by Robert Kiyosaki
https://www.amazon.com/Rich-Dad-Poor-...

YouTube Studio Gear:
Canon EOS Rebel T6i Digital SLR with EF-S 18-55mm IS STM Lens - Wi-Fi Enabled
Canon EF 50mm f/1.8 STM Lens
Canon EF-S 24mm f/2.8 STM Lens
TYCKA Rangers 56” Compact Travel Tripod
AmazonBasics Tripod Boom Microphone Stand
MELPO 15W LED Flood Light
LimoStudio Photography Photo Portrait Studio 660W
Rode VideoMicro Compact On-Camera Microphone with Rycote Lyre Shock Mount
YOUSHARES VideoMicro Windscreen Foam Filter
The Padcaster Parrot Teleprompter Kit, Portable Teleprompter for iPhone
12 Pack Set 2" X 12" X 12" Acoustic Foam Panels
Emart Photo Video Studio 10Ft Adjustable Background Stand
MOUNTDOG 6.5 x 10ft Green Screen Backdrop

**Disclosure: Most, if not all, of the links included in this description are affiliate links. This means that I get paid when you purchase using my link, which helps me keep this channel going (it takes a lot of hard work making free content). But rest assured…that I only recommend products that I have personally verified or that I am truly passionate about. So click away, I APPRECIATE THE SUPPORT!**

**Disclaimer: I’m not a money expert, nor am I certified to provide any financial advice. I’m just someone who has a passion for helping people win in life and break free from the burdens of debt, lack, and poverty. This platform is a place where you can be introduced to simple concepts about money, which is meant to inspire you to learn more and delve deeper into your own personal finances. You should not use this channel to replace the advice of certified professionals, such as Certified Public Accountants for your taxes, Certified Financial Planners for investing, and Attorneys for estate planning. ~ OK, YOU HAVE BEEN WARNED!**