• Olga

Dear Olga: Credit Score

Dear Olga,


My score is 778, am I gonna die?

Thanks,

Clueless About Credit

Dear Clueless About Credit,


Understanding your credit score is important because it's used for processing many financial transactions like mortgages, car loans, credit card applications, and student loans to name a few.


The score is out of 850 and is a combination of your past and current credit choices. Creditors use it to asses how risky (or not) you are to extend credit to. 


The score is generally is ranked as follows:

  • Excellent - 800 and up

  • Very good - 740 to 799

  • Good - 670 to 739

  • Fair - 580 to 669

  • Poor - 300 to 559

It's important to note that there are several formulas used to calculate your credit score. Your score may vary a bit between financial institutions, but not by much. So if you see a difference, don't get worried just yet.


I recommend creating a Credit Karma account. It's free and will give you the details of what impacts your credit history with personalized suggestions on how to improve your credit. It will also allow you to track your progress and measure your improvement. Instead of feeling like you're doing a terrible job you can


If there is suspicious activity with your accounts, Credit Karma is able to freeze your score until things are resolved and don't have a negative impact on your credit score. If you see records that don't belong to your name, they offer help in resolving matters with credit reporting agencies.


If your credit could use a boost, remember that it's just a picture of where you are today. You can make a choice to change it for the better starting now. If you focus on improving one thing, you will begin to see progress.


If you have a question, I'm happy to hop on a quick call with you. Here's a link to my calendar! 🗓 No pressure to sign on as a client, just a short call to give you a few practical and actionable tips to help you find your path to financial independence.

Good luck!

Olga

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