Since countries borrow on credit just like individuals do, Creditloan.com cleverly calculated a credit score for the United States. Check out this infographic to see how our nation’s credit score fares compared to other countries' scores.
As you eyeball the graphic, pay attention to the calculation. These are the same factors that FICO uses to break down our own scores.
We’re always telling you to keep one number in the back of your mind: Your credit score. As the lifeline to your financial future, you need to be thinking about your score (the number that lenders use to predict how risky you are as a potential borrower) and how it affects your ability to borrow money for major purchases and how much interest you will pay. When a bank has to decide whether or not they want to lend you money, they ask themselves: Has this person been a good debtor in the past?
Your credit score might seem scary, but it shouldn’t if you’re paying your bills on time and you know how much debt you are carrying. Checking your score is one of the very first baby steps you must take.
We like to stress opening up your own credit card as soon as possible. Even if you’re still in school and aren’t bringing in a real income, opening a card and only charging small purchases on it (those that you know you can pay off) will help out your credit score by the time you really need it. Trust us, you don’t want to graduate from college, head to Credit Karma, and realize you’ve got a lot of catching up to do. LearnVest has you covered. Check out our LV Checklist on how to check your credit report and score.