The credit score is one of the most important parts of your finances. This three-digit number gauges how responsible you are with money and can determine what interest rates lenders will charge you on mortgages and auto loans. The most important part of maintaining a strong credit score is to pay your bills on time. Another major component of the credit score formula is how much debt you owe, or your utilization ratio, which is how much debt you owe vs. the total available credit limit you have.
Aside from your Social Security number, there is one other number that has a powerful impact on your life: your credit score. A credit score is different from a credit report. The score involves several elements and all carry a different weight.
Watch How To Learn Improving Your Credit Rating from the world's leading how to specialist. This informative video will give you step-by-step instructions to make sure you get good at debt, credit cards.
Have you ever wondered why your asked to constantly check your credit score? What does it mean if your credit score is too low?
In this video, AOL Personal Finance Expert and founder of LearnVest.com, Alexa Von Tobel, reveals why it's so important to monitor your score for a better financial future.
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