Credit Score Essay

1.
Credit scores are a system used to show banks how reliable a person is in terms of borrowing money. A higher credit score is earned when a person pays back money they have spent with their credit card, the more they repay, the higher credit score the number. The higher the number, the proof to the bank that the person is capable of paying back the loan the bank gives them. The number also can affect what kind of terms and conditions should go with the loan agreement the banks gives.

2.
Credit score is the accumulation of data, shown as a three digit number, based on certain areas of your credit report. The credit report is a summary of your credit history, and your personal history such as addresses, past employment, and whether the person has been arrested or filed bankruptcy.

3.
Next is to stop building debt by cutting out your credit cards, use cash your debit card. From there, focus on past bills that you are overdue on and set up a reminder so you do not miss due dates again. After taking these steps it's important to stay patient because your credit history can stay on your report for years and years.

4.
I think how I can make this better is by setting up an automatic payment system for one of my small bills to have small payments that I am able to pay the second it is billed. I work as much as I can and make as much money as I can, but I know it will not always be enough. With school loans coming up when I transfer to UConn. Out of all the ways to improve my credit score, I think what I will focus on is being patient. This will be good credit, like we learned about previously, since I will be spending money on student loans that eventually lead to a degree that earns me money.