March is National Credit Education Month which means there is no better time to educate yourself and others on the importance of understanding the ins and outs of your credit score. Did you know that one in five Americans find errors on their credit reports and that more than 90% of home and auto insurers use credit ratings to decide who to cover and what premiums to charge? It’s for these reasons you should actively monitor your credit score as well as educate yourself on how to properly manage it. Let’s get started.
History of National Credit Education Month
There’s a lot to learn about credit during National Credit Education Month. While it’s a complex topic, there are some key concepts you should understand and there is no shortage of resources you can turn to for help this month. Your bank, your employer, financial experts, and the internet can help you learn how to manage, build, and improve your credit score.
As you explore the resources and events available to you this month, keep a few things in mind. Credit is an indication of your financial trustworthiness. Having “good credit” means your history of payments, employment and salary make you a good candidate for a loan, and creditors – those who lend money or services – will be more willing to work with you. While bad credit can follow you for quite a while (as much as seven years), it is fixable. The key is to know the right steps to take to get your credit back on track.
Not every source is credible. Some credit card companies will present themselves as a great deal but upon closer inspection, the fees, interest rates, and other terms are not in your best interest. So, dedicate the necessary time to educate yourself on credit and your current credit situation. It will benefit you in the long run.