00:01Remember when you used to get a report card?
00:03A credit score is sort of like the adult version of those old pieces of paper.
00:13Instead of assessing schoolwork, they document your use of credit.
00:16Companies like Experian and Transition look at your purchases,
00:19then receive reports from banks, credit card companies, retail stores, and mortgage lenders.
00:24It's like having a bunch of Regina Georges evaluate whether or not you can sit with them.
00:28The Human Torch was probably denied a bank loan because of issues like paying late,
00:32missing payments, or spending more than your credit limit, which will alter those scores.
00:36So, if you make a mistake, your credit will drop.
00:39Depending on your bad credit behavior, errors can stay on your report anywhere between 7 to 10 years.
00:44Any red flag can give creditors a reason to deny loans or raise your interest rate.
00:49How can you avoid the dreaded credit score drop?
00:51Be sure to have things like a long history of paying your credit card on time.
00:55Keep in mind that each person is entitled to one free credit report per year from each credit bureau.
01:00Log on to annualcreditreport.com to view all your reports and to stay up to date on your score,
01:05as well as catch errors or signs of theft.
01:08Check those scores and make sure they're up to par, or else you're grounded.
01:12Coinage, life well spent.
01:17Presented by GEICO.
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