In college, it’s easy to get lost in numbers: final grades, test scores, GPAs. Once graduation hits, these numbers don’t have such a huge impact on your life. However, there is one number that sticks around forever: your credit score. Once you open your first line of credit (i.e. credit cards, student loans), Equifax, Experian, and TransUnion are keepng tabs on all of your spending. Your credit score determines what type of lending you will get in your future. So basically, the spending you are doing in college can affect whether or not you get approve for a car or home loan (or if your interest rates are hitting the roof) in the future.
It is important to recognize that not every credit score provided for sale online (i.e. CreditKarma, FreeCreditScore.com) are FICO scores. FICO (Fair Isaac Corporation) scores are the most widely used an accepted credit scores and are calculated by the credit information that the crediting agency keeps on you. You have a credit score for each of the three credit reporting agencies (Equifax, Experian and TransUnion). See how your credit score is calculated below.