Understanding Credit and Credit Scores - What Your Score Actually Means

Credit is complicated. And so are credit scores. In fact, 1 of 8 Americans are unaware what their credit scores are and don't even have the idea how to find out. So if you're confused with credit, know that you’re not alone.

When it comes to finances, credit is one of the most important concepts that people need to understand. Credit is the way of measuring how likely you are to repay your debts. It also refers to your financial history. Your credit is calculated by taking into account several factors including your payment history, how much debt you have, and how long you’ve had credit accounts. Your credit score is a three-digit number that reflects your creditworthiness. Lenders use your credit score to determine whether or not they want to lend you money and at what interest rate.

In this video, we discuss in detail what credit is and what a credit score is. We’ll help you understand how important good credit and a high score is in achieving a good financial future, so watch until the end!

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