Each week, we are sharing a financial wellness tip to help you make the connection between financial management decisions, your overall wellness, and student success. Money touches every aspect of our lives, and a lack of financial literacy can cause unnecessary stress and negatively impact one’s mental and physical health.
Understanding Credit Scores
It is important to know your credit score and also monitor it for changes, especially if you are trying to build or rebuild your credit.
Did you know that you have many credit scores? The two most common are the FICO score and the Vantage score. The main difference between the two is that they use different factors to calculate the score, as well as different scoring scales/systems. You can learn more about FICO and Vantage scores here.
The FICO score is considered the “gold standard” and is used most often for lending and credit decisions. FICO scores are calculated using many different pieces of credit data in your credit report, which include: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). For more details about how your FICO score is calculated, visit the Consumer Credit Counseling Service of Rochester website.
Be sure to follow the Financial Literacy team on Facebook, Twitter, or Instagram for more financial tips throughout the semester!
