Understanding Credit Management

When it comes to understanding personal finances and credit management, nearly 40% of homeowners grade themselves as scoring a ‘C’, ‘D’ or ‘F’.

We often hear how important it is to have a good credit score.

But besides paying bills on time, what should we do to establish or improve our credit?

Michelle Thornhill, a senior vice president with Wells Fargo, says Credit scores exist so potential lenders can decide how much of a gamble they’re making when lending you money — meaning, what are the chances you’ll pay them back and on time?

Lenders can be a credit card company, a bank for a car loan, a mortgage company or department store.

Thornhill says that potential employers and landlords may sometimes use your credit history to make decisions about hiring you or renting you an apartment — they have the right to do those things, since the law gives them the ability to access your credit report.

The credit bureaus — Equifax, Experian and TransUnion — supply lenders, landlords and employers with your credit history and credit score.

You can also click here to request a free copy of your credit report once a year.