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Video Transcript

In this episode of Old National’s Real Life Finance, we are going to discuss credit history.

Your credit is like a school report card. You are graded on how well you pay back money that you borrow. Credit bureaus rate your credit each month and assign you a grade, which is called a “credit score.” 

Lenders report the details of all your loans to the credit bureaus. If you always pay back what you borrow, you get an A. If you pay your lenders late, you get a C. And if you don’t pay them at all, you get an F. 

Your credit score determines how easy it will be for you to borrow money. 

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Credit Reports

In today’s age, building and maintaining good credit can make or break your future. Good credit means you honor your commitments, and pay your bills, always on time.

Your credit report is a detailed summary of all information about your credit situation. 

This report will show:

  • How much you owe
  • How you pay your bills
  • And whether your payments have ever been late or delinquent
  • All of your information is tracked and given a credit score. Scores range between 300 and 850. The higher the score, the better the credit.

In the past, credit was mainly used to determine whether you could get a loan or not. Now, it’s used for so much more. Good credit can help you not only obtain loans but also rent apartments, get a job, lower insurance premiums, get a cell phone and qualify for lower interest rates. 

Here are some additional steps that you can put into place to achieve a great credit score.

Get a complimentary copy of your credit report. I recommend www.annualcreditreport.com.

Set up an automated system so your bills are paid automatically on time every month. Remember, 35% of your credit score is made up of on-time payments.

Review your medical and auto insurance to make sure you have adequate coverage. Medical debt is one of the leading cause of bankruptcy. 

Review your credit report every year and 3 months prior to any major purchase

Now that you have your credit where you want it, here are some steps to keep it there!

  • Pay your bills on time
  • Keep your debts low
  • Keep credit inquiries to a minimum
  • Maintain health and auto insurance
  • Use your credit actively and pay everything off in full every month 

Thank you for watching today, to continue your financial education look for additional Real Life Finance videos from Old National.


Ben is responsible for enhancing Old National financial literacy initiatives by partnering with schools, colleges, universities, businesses, nonprofits and government agencies. In 2017, Ben was recognized by the National Financial Educators Council (NFEC) with its coveted Financial Education Instructor of the Year Award.

This content is not intended to provide legal, tax, accounting, financial or investment advice or indicate the suitability of any product or service for your unique circumstances. You are encouraged to consult with a qualified legal, tax, accounting, financial or investment professional based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
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