
For many millennials, sorting out personal finances and (maybe) checking your credit score is on the to-do list – but if you’re anything like me, it’s right at the end, somewhere after colour-coding your bookshelf, binge-watching a new series and finally returning that late-night, ill-judged clothes order.
But, like most things, it’s best not to put it off, so getting in the know about your credit score deserves to be bumped up the list a few places. The good news is that checking your score and seeing your full credit report is totally free and easy to do thanks to CreditWise® from Capital One.
Read on to get the lowdown on credit scores and why it's something we all need to get savvy about. You'll thank me for it.

What is a credit score?
It might sound a bit like jargon, but your credit score is basically a number which, in essence, shows how trustworthy you are to pay back borrowed money in future.
The score is based on your past credit file, which is a record of things such as payments for loans, credit cards or phone bills. It's one of the main things that lenders look at when assessing whether to give you credit, a mortgage or even a new phone contract because it serves as a general picture of your financial health and reliability.
DESIGNED BY NATALIA BAGNIEWSKA.
Why is it important?
"Most people think a credit rating is only applicable if they’re taking a mortgage out, but they might not understand how it can impact on lots of other areas," said Catherine Morgan, a financial expert and founder of The Money Panel. "Even if you think that you don’t have a good relationship with money or you don’t handle it very well, getting to know your credit score can give you an insight into your own financial picture and help to put you back in the driver's seat, so to speak."
Without wanting to sound like a nagging parent, it’s pretty important as, yes, it can determine whether you get a mortgage for a house, but it can also impact your ability to get the lowest APRs (the annual interest rate on borrowing) or even your eligibility for other financial products.
Your score may also be checked for certain jobs. According to recruitment agencies, more and more employers are running credit checks on applicants, especially in finance, healthcare and engineering. So it's good to be aware of where you stand with your score before these checks are made. Landlords can also run a credit check on tenants – although they need written permission to do this – and if you have a poor credit history, they may ask you for a larger deposit, for example.
"Lenders place a big emphasis on your credit score," said Tina Weeks, an independent financial adviser and founder of Serenity Financial Planning. "If the lender can see you're managing any credit you have really well, that goes in your favour."
DESIGNED BY NATALIA BAGNIEWSKA.
How can you check it?
To check your credit score you can use a free tool such as CreditWise from Capital One. I promise you, by the time you’ve had your morning coffee, the hard work will be over and your credit score will be in front of you. To register, you need to enter some personal details such as your name and date of birth and hey presto, some 'magic' occurs – well, not really – and your score appears on a colourful barometer, no maths involved.
You'll also get more than just your credit score. You'll be able to see your full credit report, which shows exactly what's impacting your credit score – for better or for worse – so you're able to start taking control of it.
Great, right?
DESIGNED BY NATALIA BAGNIEWSKA.
What does it mean?
Your score will be rated out of 700 (using Equifax data) – the higher the number, the better the score – and the barometer will change from red to orange to green, depending on the quality of your score. This traffic light colour system should give you an idea on how you rank and how you'll be viewed by lenders.
But rather than just provide you with a random number, the tool goes one step further to put it in context, explaining what is holding you back, what factors you should watch out for and what is going well.
If your score is edging towards the lower end of the barometer, don’t panic. For one, you can improve your score over time, and checking it sooner rather than later means there is more time on your side to start taking control of it.
There are relatively easy things you can do to help this, like registering on the electoral roll (if you're eligible to vote) and making sure you don’t have any outstanding payments with utility or phone companies, for example.
If you’ve recently applied for credit, you may notice that this brings down your credit score for a period of time, so it’s a good idea to only apply when you really need to.
"It can take a while to improve your score, but it can be rectified," said Weeks. "Your financial history beyond six years ago tends to be wiped from your credit score."
If the score is good, well done you. Give yourself a pat on the back. You can maintain your score by looking at what is going well for you, and taking note of what CreditWise suggests is holding you back and what you need to watch, as well as continuing to manage any credit you have.
Don't forget that your credit score is not static: it will change over time and since CreditWise is free, you can check up on it as often as you like. Capital One advises using the tool monthly, as this is how often your credit score can change and helps you to keep on top of it.
DESIGNED BY NATALIA BAGNIEWSKA.
What else do I need to think about?
If you’re linked to someone else financially, for example through a joint account, or you’re thinking about taking on a joint financial commitment like a mortgage, it’s important to understand that you’ve got something called a 'financial association'.
"Just be aware that if you share accounts or credit with someone else, it is a joint responsibility and can affect both of your credit scores," said Morgan.
The important thing is to talk openly about a long-term commitment and ensure any shared financial commitments are well managed, because even if you close that joint product or account after a year, the so-called 'footprint' on your credit file can last a bit longer.
"It’s still a taboo subject," said Morgan. "The last thing you want to do when you meet someone is ask them, 'What’s your history with money?' But it’s one of those conversations we should be having."
Also, it's worth knowing that checking your score will have no detrimental impact and using CreditWise won’t cost you a penny. Although your credit score might not seem relevant right now, starting to understand and manage it is a step in the right direction. It will give you peace of mind, so that when you do come to need it, you already know where you stand with your credit score.
DESIGNED BY NATALIA BAGNIEWSKA.Like what you see? How about some more R29 goodness, right here?
Instagram Stories' New Questions Sticker Should Come With A Warning Label
This New Netflix Hack Makes Watching Shows Offline Easier Than Ever