From the course: Financial Adulting

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Why a credit score is important

Why a credit score is important

From the course: Financial Adulting

Why a credit score is important

- All right, so time to talk about your credit score, or your life score, as I like to call it. It's a number that will follow you the rest of your life and it's going to affect so many areas of your life. So what's your credit score? Why do you have one? Well, a credit score is just another name for your reliability number. It's a number that tells strangers whether or not they can trust you. So when someone looks at your credit score, they're asking themselves, "Can I trust this person?" The credit score is going to tell them yes, maybe, or no, depending on how high or low your credit score is. So the credit score is interesting because it's one of the reasons the rich get richer. In fact, there's a pretty simple reason for it. Everything is cheaper for them, and it sounds unfair, right? Well, one of the reasons is their credit score. So most rich people have better credit scores because they pay back loans when they say…

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