Today we’re going to talk about your credit score.
Why is it important to understand the components of your credit score? Well, for one, many can be confusing, and to get your finances on the right track, you need to understand them. The only way to take control of your financial life is by taking one step at a time, and if you understand every component of your credit score, you will be better able to improve it!
I applied for a car loan in 2010. I was given a 9.6% interest rate because I had a credit score of about 600. Two years later, I qualified for a 2.9% interest rate when I refinanced that loan. Why? My credit score had risen 150 points! Read on to understand the different components of your credit score, and don’t ever take a car loan at 10%!