What Do You Know About Credit?

By: Allison Herman | October 9, 2017
Topics: Business Skills
"To be completely honest, I’ve had a credit card for two years, and I don’t know how a credit score is calculated, nor do I know my own score. And that’s an issue."

More importantly, what should you know about credit?

teaching-my-teen-money-management

Getting a credit card is really tempting. A lot of power and benefits are held in that shiny piece of plastic. However, it’s easy to fall into the the illusion of buying now and paying later with money you may not have yet. It’s essential to be aware of the responsibilities that come with credit cards.

In a past post, we outlined some great resources for helping you manage your finances. We’ve recently come across another platform: the U.S. News & World Report’s credit survey and guide. Here, you can find the knowledge necessary to be financially responsible. 

U.S. News & World Report published a study of 1,500 credit card users with credit scores below 640. One finding states 35% of those individuals conducted no research before applying for a credit card.

Additionally, 32% of respondents are taking no steps to improve their credit scores. 20% do not even know what steps to take. The study addresses these issues and more, ranging from: what to do before applying for a credit card, how to choose the best card for you, what to do if your application is denied, and how to rebuild credit.

To be completely honest, I don’t know how to calculate a credit score and I’ve had a credit card for two years. I don’t even know my own credit score. And that’s an issue. With all the technology available to us, checking your credit score is simple and inexpensive, so I have no excuse. Luckily, the “Before You Apply” outlines the determination of credit scores. There’s also discussion of which bureaus are reputable to request your score from. U.S. News & World Report also talks about recognizing identity errors, incorrect account details, fraudulent accounts.

The report includes an extensive amount of information, making it a simple guideline to follow for either basic knowledge or specific questions. Best of all, it’s located on one site, perfect for the typical, on-the-go, streamlined millennial.

If you’re interested in learning more about entrepreneurship and business be sure to check out our Business Skills Programs.

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