Today marks the fifth annual Get Smart About Credit Day. Today the American Bankers Association is encouraging its members to promote raise awareness among teens and young adults on the importance of good credit.
Though this program is aimed primarily at young credit-seekers, people of all ages could stand to take some lessons in credit. How savvy are you about your credit history? A quick trip to annualcreditreport.com can reveal a lot. You should request a free copy of your credit report every four months, once per year from three different sources: Equifax, Experian and TransUnion. Keep on top of your credit history by regularly checking for errors or fraudulent activity – particularly before making a large purchase.
Also, you should know your credit score, which is what lenders use to measure of your credit risk. Scores can range from the minimum of 300 to a perfect score of 850. The higher your score, the lower your risk (and the greater your borrowing power), so you should shoot for the high 700s or above. This score is calculated by Fair Isaac Corporation (FICO) and is not free, but can be obtained for a small fee. You can get your score directly from Fair Isaac, the Annual Credit Report Request Service, or one of the three credit reporting agencies listed above.
A healthy credit history for adults and youth alike can assure a healthy economy for years to come. So have a happy Get Smart About Credit Day and be sure to apply all that you’ve learned.
