Why You Should Be Tracking Your Credit Score
Monitoring your credit could win you $20,000*
So you’re in college—whether you’re a brand-new freshman or senior about to graduate, there’s no doubt you have dreams and ambitions you want to work towards. Even if your ultimate goal is to pay off your student loans quickly, there’s something you want to achieve in the future, right?
The reality is that getting to the finish line will likely require capital. Investment. Money.
But don’t worry. SoFi wants to help you achieve those ambitions by giving you a chance to win $20,000. For real. All you have to do is link an external financial account or sign up for credit score monitoring with SoFi to be eligible. Click here to get all the fine print and enter the sweepstakes.
You might be wondering, “Why should I track my credit score, anyway?” Aside from the $20,000 on the line? There are plenty of reasons to keep checking in on your credit that will pay off in the long run. Literally.
Understand & Establish Credit Early
Knowing your credit score is obviously important, but knowing how it affects you and why is equally important in your financial journey.
Let’s start with the basics. Your credit score is a number (generally between 300 and 850) that gives a rough estimate of how likely you are to make payments on time and/or repay a loan. The higher the number, the better your credit.
Now we’ll get to the why. Creditors use your credit score to help determine if you should be approved for a loan or credit card. Having a higher credit score can help you rent an apartment or potentially net you a lower insurance rate.
Protect Against Fraud & Identity Theft
Since your credit report has all your personal information on it, it’s easy to check for discrepancies on the report. If you notice a strange address listed, credit cards you didn’t apply for, or charges on your credit cards that don’t look familiar, your credit report will lay it all out.
Finding these issues quickly and early will save you a lot of headaches in the long run. You can also dispute and resolve any errors that might be on your report. Creditors make mistakes, too. Staying on top of this is important and can potentially improve your score.
Improve Your Credit Score
What if you checked your credit score, and it’s less than ideal? Don’t worry—that number isn’t fixed. It will go up and down over time by a few points, but you can also make major changes if you want to really improve your credit.
Here are a few simple things you can do to increase your credit:
- Pay your bills on time
- Keep your credit usage low (i.e., don’t max out all your credit cards or have a lot of different credit cards)
- Keep your balances low
- Regularly check your credit report
- Pay off any outstanding debts
Establishing credit early creates long-term benefits. Paying off a small charge card on time every month shows creditors that you’re responsible—your credit line will slowly increase, and your credit score will likely start to climb.
When you eventually need to apply for a loan for a big purchase like a car or house, having a track record of solid credit makes this entire process much easier.
Make Better Financial Decisions
Knowing more about your finances gives you a better education when it comes to budgeting. When you have an idea of exactly where your money is going, you’re likely going to make smarter decisions with regards to spending.
If the idea of budgeting has always seemed daunting, start small by just keeping tabs on your credit score. Once you get a handle on how that works and what affects it, taking baby steps toward becoming more financially responsible will be easier. Remember, you don’t have to change everything all at once—just work towards taking small actions.
Remember to enter the SoFi sweepstakes for a chance to win $20,000
This is a sponsored post in partnership with SoFi.
*No purchase necessary. A purchase will not increase your chances of winning. Open only to legal residents of the 50 US/DC, 18+. Void where prohibited by law. Sweepstakes ends at 11:59 pm ET on 1/31/25. Subject to Official Rules, including alternate methods of entry, prizes, limits, and odds, click here. Sponsor: Social Finance LLC (“SoFi”) 234 First Street, San Francisco, CA 94105.
