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DEFINITION: Think of your credit score like a financial GPA, ranging from 300 (horrible) to 850 (exceptional). The more responsible you are with money, the higher your score. No matter your score, you can make improvements—start by paying your bills on time, keeping your credit card balance low, and making loan payments when they’re due.
WHY IT’S GREAT: A high credit score can help you get approved for low interest loans, negotiate the best insurance rates, and even rent an apartment.
USE IT IN A SENTENCE: “I’ve been paying off all my loans on time for two years, so my credit score has really improved—it’s up to 720 now!”
If you don’t know your credit score, you can access it for free at AnnualCreditReport.com.
What are you doing to improve your credit score? Let me know in the comments!