March is National Credit Education Month, and it’s the perfect time for people to learn more about credit, understand their credit scores, and then take the necessary actions to improve those scores. Credit is a part of a person’s financial power, allowing them to purchase things they need now by promising to pay for them later or over time.

Credit is also affected by a variety of different factors, which is why it’s important for people to know their credit score and take the actions needed to ensure it isn’t being negatively affected by these factors. This month is the ideal time for people to get their financial house in order and to improve their credit scores.

The History Of National Credit Education Month

Although we’re unsure of the exact year National Credit Education Month was established, we do know who initiated it. It was first created by the Credit Education Resources Foundation and Credit Professionals International. They established this month to raise public awareness about credit and its significance.

Some Facts About Credit

Below are some facts about credit that we believe everyone should be aware of. We gathered these facts while researching National Credit Education Month and hope they will be useful.

• The five key factors that influence a person’s credit score are Payment History, Length of Credit History, Credit Utilization, Credit Mix, and New Credit Inquiries.
• A Credit Report is a collection of information about a person’s credit behavior.
• A Credit Score is a numerical representation of a person’s creditworthiness.
• The three main credit bureaus that issue credit reports are Experian, TransUnion, and Equifax.
• Negative credit items eventually come off a credit report, but it may take up to 10 years.
• FICO Credit Scores range from 300 to 850.
• Checking your own credit score won’t harm your credit rating.
• A poor credit score usually means that a person ends up paying more in interest when they take out a loan.

Observing National Credit Education Month

Observing this month is straightforward. You can do so by learning more about how credit works and by understanding your credit score. There are numerous ways to check your credit score for free — perhaps even through the bank that manages your checking and savings accounts.

Once you’ve done that, you can then take steps to improve your credit. We also encourage you to use the hashtag #CreditEducationMonth to spread the word about this important month far and wide.