Here’s the rundown of what we discuss in this episode:What a credit score is:3 agencies produce credit scores: Experian, Equifax, TransunionIt’s like a SAT score for college entrance, it helps lenders evaluate your credit-worthiness based on a score.It’s only real purpose is to help you get a loan: house, car, credit card.  It does have some secondary purposes like it could get pulled if you’re trying to rent a house, get a job, etc.How is it calculated?35% payment history - How long have you consistently paid your bills?30% amount owed, a.k.a. credit utilization - Having a lot of cards actually helps if you aren’t spending all of it.15% length of credit - How long has credit been available to you.10% new credit - Opening a new card doesn’t impact your score a lot10% credit mix - Having a mortgage, credit card, car payment, etc. all help a tiny little bitWhat really matters?Pay everything on time, over time.The tiny fluctuations of applying for a new card or having your report “run” don’t matter if you are always paying your billsHow to protect your credit and credit scoreFreeze it! - Freezing a report is like building a wall around your credit report. Credit monitoring is like leaving the door open and installing a cameraOur top 3 key takeaways for this episode:Credit scores mainly matter if you want to borrow money and we advocate being debt free.  And your score really only needs to be good enough, so it’s not something you should stress over.Pay each of your bills on time and in full every month and your credit score will be fine.  If you’re not able to do that, ensure you pay the minimum payments on time each month.Freeze your reports at Experian, Equifax, Transunion.---Show ReferencesEquifax Security FreezeExperian Security FreezeTransunion Security Freeze---Follow friends on FIRETwitterInstagramFacebookLinkedInLeave us a voicemail or text us: 404-981-3370eMail us at:  friendsonfiremm@gmail.comVisit our website: www.friendsonfire.org---Other LinksMaggie’s Blog: Mostly Minimal LifeMike’s Book: Your New Relationship with Money