Credit Scores Explained

Why does your credit score go down after you pay off a loan? How does the scoring algorithm work? And the biggest lies about credit scores.

Hey everyone 👋 ,

Hope you're having a good week so far.

'Credit scores'...

A term that my 21 year old credit-card-spending self would squirm at the sound of.

But like it or not, credit scores are an integral part of our financial lives.

That dreaded three-digit number has a huge impact on whether we qualify for a mortgage, a car loan or an apartment lease. It can also determine how much we pay for home or car insurance.

But many people don't know how credit scores work. And there's a growing sense of frustration with the scoring algorithm.

So with that in mind, let's dive in.

Today I’ll cover:

• Credit scores. A quick explanation📝

• 🧐 How does the credit score algorithm work

• You’ve paid off your debt and your score has decreased. How?!

• Five myths about credit scores

• 📹 60-second explainer on credit scores

• Terminology worth knowing

• Useful tools + resources

p.s. if you want to grow your financial bra…