March is National Credit Education Month. As it draws to a close, today, Paula Christine and Producer Jon Gay do a deep dive into credit scores. Why are they important, how do you build credit, and how do you rebuild your credit score if it’s dropped?

There are many ways to establish credit when you’re young. This could mean using a secured credit card (where the limit is backed up by a deposit in a bank account). Or it could mean having a minor as a co-signer on a loan, such as an auto loan. Just be sure you’re making those payments!

Why is a credit score important? It will affect your ability to get a home or car loan and the interest rate you’ll pay. And here in Michigan, it can even affect your car insurance rate. This is unfair, and there’s work being done to change this, but it remains the law for now.

How do you find your credit score? There are three credit bureaus that you can check online – Experian, Equifax, and TransUnion. You should download your credit report and ensure there are no mistakes. And if there are marks against you, you should work to fix them. Paula also suggests freezing your credit, and only unfreezing it when applying for a loan. Any inquiries into your credit history (whether you asked for them or not!) can impact your score.

If you have a low credit score, you might also consider being a co-signer on a loan. And if you’re in debt, some companies exist to help you create a plan to get out. Or, you can even negotiate with credit card companies yourself!

You can work your way out of debt with discipline. You can pay off multiple credit cards one at a time, either by smallest balance or highest interest rate.

Paula has several tips on getting out of debt on the resource page of her website here: https://paulachristine.com/resources/

Need help with your financial future? Learn more about Paula and her work at PaulaChristine.com or send her an email: Paula@PaualChristine.com