Understanding Credit Scores

This lesson demystifies credit scores by explaining what they are, how they’re calculated, and why they matter. It covers practical strategies for building and improving your credit score—including effective debt repayment methods—and offers a balanced perspective on leveraging credit for financial success.

Learning Objectives:

Upon completion of this module, you will:
– Understand Credit Score Components: Learn how payment history, credit utilization, length of credit history, credit mix, and new credit inquiries shape your credit score.

– Recognize the Importance of a Strong Credit Score: Discover how credit scores affect access to loans, interest rates, rental applications, insurance premiums, and employment opportunities.

– Master Credit Building Strategies: Gain insights into effective methods for improving your credit score, including on-time payments, debt reduction techniques, and managing credit wisely.

– Evaluate Financial Trade-offs: Explore both the benefits and potential pitfalls of credit reliance, and understand how to balance credit management with overall financial planning.