I’m nothing if not competitive. First to stand up when the airplane lands? Me. Playing ping pong vs my 3-year-old niece? Final score: 100-0. Cholesterol level? Max. 

So when I heard that my credit was also being scored, I knew I had another competition to dominate. But in truth, I didn’t even know what a credit score was. 

Here’s what it is, why it’s important, and how to pump that number up.

What is a credit score?

A credit score is a number that shows how good you are at managing money, especially when it comes to paying back loans or credit cards. It’s like a report card for grown-ups but for finances. The score ranges from 300 to 850. The higher your score, the better.

How is it calculated?

Your credit score is calculated based on a few things:

1. Payment history: Do you pay your bills on time? Late payments can hurt your score.

2. Amounts owed: How much do you owe compared to your credit limit? If you owe a lot, it might lower your score.

3. Length of credit history: How long have you had credit? A longer history can help your score.

4. Credit mix: Do you have different types of credit, like credit cards, mortgages, or car loans? A good mix can boost your score.

5. Thirsty for new credit: Have you recently applied for new credit? Too many new accounts can be a red flag.

Why do I need a good credit score?

A good credit score makes life easier. It can help you:

• Get a loan or a credit card with better interest rates.

• Rent an apartment more easily.

• Sometimes even get a job, as some employers check your credit score.

Where do I check mine?

Check your what? Oh, right, CREDIT. You can check your credit score for free once a year at websites like AnnualCreditReport.com. Many banks and credit card companies also offer free credit score checks.

How do I make it better?

Improving your credit score takes time, but it’s doable. Here’s what I’ve been doing:

1. Paying bills on time: This is the biggest factor. I set up a bunch of reminders to make sure I don’t miss any payments. You know when you set 6 alarms to wake up? That’s me with bills.

2. Reducing debt: I’m paying down my credit card balances and not maxing them out. Boring but true. 

3. Avoiding new credit: I’m not applying for new credit cards or loans right now. I’m focusing on managing what I have.

4. Checking for errors: I looked at my credit report to make sure there were no mistakes. If there were any, I would dispute them. Love a good fight. 

When should I start worrying about it?

Honestly, the best time to start worrying about your credit score is riiiiiiiiiiight now. Even if you’re young and not thinking about buying a house or a car yet, a good credit score takes time to build. The sooner you start, the better off you’ll be when you need it.

Good credit is a marathon, not a sprint

I prefer a swift, decisive victory, like that ping-pong match vs my niece. But with credit, it’s more of a long game. Keep paying your bills on time, don’t take on a ton of debt, and don’t apply for every credit card you get advertised just because it’s a baller metal card. You’ll be happy you boosted that credit score!