Credit cards: Everything you need to know about how credit scores work

A good credit score is the key to getting approved for loans and credit cards, as well as getting favorable interest rates, but it can also affect one’s ability to get a job, take out insurance, open bank accounts, and purchase utilities.
A person’s credit score is a measure of their financial responsibility, and understanding how credit scores work is the first step to achieving a high credit score, which is as essential for young adults just starting out in life as it is for seasoned financial veterans.
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There are a number of factors that credit unions take into account when tabulating one’s credit score, and each factor carries a different weight.
High-impact factors include one’s payment history, credit card utilization, and derogatory marks.
It is incredibly important to stay on top of all credit card and loan payments because this helps assure potential lenders that their client will pay back their debt. Even a single missed payment can have a severe negative impact on one’s credit score.
One’s cre …