Important things to know about Credit Scores and Reports

Apr 12, 2023Financial Literacy

Your credit can be an important piece of your financial life and financial healthiness.  Credit scores and reports provide a snapshot of your financial habits that are often used by mortgage companies, credit card companies, and other places that look at your creditworthiness before making decisions.  Understanding how your credit score is determined and how your credit score works can help you achieve financial goals like buying a home or car, taking out a personal or business loan, and paying off your debt.  

Using the free *Native American Financial Services Association (NAFSA) Financial Literacy Program, you can explore online playlists with many modules that relate to overall financial competency, whether this is understanding checking accounts or estate planning, our curated playlists will provide you with important information.

Credit Scores and Reports:

A credit score is a three-digit number that represents your creditworthiness based on factors from your financial history.  This number can have a big impact on your life, as this is used by lenders to determine whether you qualify for a loan, as well as the interest rate you will be charged and the maximum amount you may be loaned.  

You can request your credit report from credit bureaus that collect information and provide these reports.  The three major credit bureaus are Experian, Equifax, and TransUnion.  Upon request, each must provide you with a free credit report once every twelve months.  

Our Credit Scores and Reports module, located in the Building Financial Capability playlist explains how to request your credit report, what is included in that report, the different factors that determine your credit score, as well as how to understand what to look for in your report.  If improving your credit score is something you are looking to achieve, this module also goes through seven actions that can help to do that.   

Because your credit score is a key determinant of your creditworthiness, which directly correlates to major financial purchases, it is key to not only monitor your credit score but understand your financial habits that contribute to it.  

The NAFSA Financial Literacy Program provides a variety of modules and tools with easy-to-understand information to help people better comprehend their finances and make more informed decisions.

Explore the program today:

*The NAFSA Financial Literacy Program content contained on the NAFSA web page(s) referenced above, and on any subsequent pages created by our service providers/partners, provides general consumer information. It is not legal advice or regulatory guidance. There may be other resources that also serve your needs and you are always encouraged to, and should, consult with your own professional advisors prior to making any financial decisions.

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