Credit 101

A Video Guide to Credit Basics

Comments 0 Comments

How to build good credit, when to close a credit card, why to check credit reports — personal finance experts addressed these and other credit basics in a Google Hangout coordinated by Bank of America and the Khan Academy on Monday.

The panelists highlighted the importance of regular credit checks, because as Farnoosh Torabi, a personal finance journalist with Yahoo! Finance, put it, a strong credit history means saving money. CEO Ian Cohen explained the significance of good credit with the hangout host, Sal Khan of Khan Academy, along with Torabi, Branden Recker of GreenPath Debt Solutions and Rob Habgood of Bank of America.

“The very best rates you’re going to get … generally happen when you reach a credit score of 750,” Cohen said during the discussion, adding that scores between 680 and 720 will also help consumers qualify for credit at good interest rates.

The experts touched on several crucial points of credit health, including credit score composition, how certain behaviors affect credit scores and who looks at credit reports. Among all the topics covered, the conversation came back to the main point: Consumers should check their credit as often as possible, whether that’s through pulling annual credit reports or using free tools like the Credit Report Card.

Knowing and understanding one’s own credit history is not only a key component of managing personal finance, it will also help individuals identify areas in need of improvement that will help them save money and reach financial goals in the future.

The hourlong conversation – along with other videos – is available for viewing on the Better Money Habits website, and it offers insightful information for consumers looking to manage their credit.

Image: iStock

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Find out where you stand.
Get your FREE personalized credit report card.

Sign Up Now

Stay Connected to Our Experts

Please submit your email address to get credit & money tips & advice
from our team of 50+ experts, delivered weekly to your inbox.