With the holidays approaching, it’s time I talk about finances.
Here are some basics. A credit score is a number representing the creditworthiness of a person, the likelihood that person will pay his or her debts.
Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers. Widespread use of credit scores has made credit more widely available and cheaper for consumers. And because a score does not consider race, sex or ethnicity, it is generally considered to be the most fair and objective underwriting tool available to lenders.
Straight up, I don’t use credit cards anymore. They’re the worst thing going. You can easily rack up hundreds, if not thousands of dollars that will ruin your life if you’re not careful. That’s why I just go cash only, and even then, I never carry more than $10 dollars on me. Extra money that would have go to the credit card companies now sit in my bank account.
If you’re in college, keeping your credit score clean is important if you want to get the job you want after graduating. That’s why if you’re thinking about a spending spree this holiday season, consider the consequences.
To find out what your credit score is, click this link for a free credit score.