When you really think about it, you realize that we rate and/or score nearly all things in life so as to compare them with their contemporaries and confidently grant our patronage. Zagat gives restaurants ratings so that you can find the best tikka masala out of 20 Indian joints; eBay sellers have feedback ratings so you know which person will screw you the least when spending hundreds on sold-out Springsteen tickets; and in school, you get grades and take the SATs in order for some school to grant you admission so you can spend four years there doing keg stands and having lots of random sex. Your credit score’s no different. The ins and outs of your financial activity are monitored and given a three-digit “score” so that all sorts of financial and other institutions have a way to determine your financial reliability and ability to get everything from a home loan to an iPhone.
If you’re a little unclear as to what a credit score is and how it actually impacts your life, don’t stress. After the jump, Frisky Money contributor Manisha Thakor, personal finance expert for women and author of On My Own Two Feet: A Modern Girl’s Guide to Personal Finance, answers your top credit score-related questions … Keep reading »