How Is Your Credit Score Calculated?

Brought to you by Bank of America: Better Money Habits

Knowing what credit is and how it affects you might be the most important thing you can do for your financial wellbeing. More simply put, your credit score is like your financial reputation – it helps lenders determine how trustworthy of a borrower you are, whether it’s for a home mortgage, a car lease or even something as small as a cell phone. The lower your credit score is, the higher your interest rates will be, and the more money you’ll have to spend over time.

To get ahead of the curve, check out how your credit score is calculated below.

Head over to Better Money Habits by Bank of America, where you can learn more about ways to build credit, manage your credit report, co-sign loans and more!