How Can I Start Building Credit the Right Way?

What is a credit score?

Before you can start building credit, you need to understand what a credit score is and why it’s important. A credit score is a three-digit number, typically between 300 to 850, which the three major credit bureaus (Equifax, Experian and Trans Union) calculated based on information in your credit report.

Although the three credit reporting bureaus use similar methods to determine a credit score, the formulas they use are not exactly the same and your credit score will vary from bureau to bureau, which is why it’s important to check your credit score with each of them to get a fuller overall picture of your overall creditworthiness and how you look to your potential lenders.

Continue reading more at RBFCU.org.