Student Credit & Money Management Services - Iowa Memorial Union: The University of Iowa

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Student Credit and Money Management Services

Credit Cards / Improving Your Credit

Don't think your credit matters?

You may not think you need a good credit report right now -- after all, you're not planning on buying a house or taking out a car loan for at least a few years. But credit reports aren't just about mortgages and car loans. Rental agencies use them to approve leases. Employers use them to check trustworthiness and common sense. Credit card companies offer lower rates to people with excellent credit.

Might it affect my job?

Yes--your prospective employer may look at your credit report to see if you're responsible. No, your credit is not equal to your worth as an employee, and certainly not as a person. But it's legal, and it happens.

What are credit reports and credit scores?

Credit reports are histories compiled by three private companies: TransUnion, Experian, and Equifax. They include late payments, student loans, credit-use and credit-application history, debt load, income, collections and defaults, and address changes. Your credit score is figured by the Fair, Isaacson Company (FICO), using your credit reports from the Big 3. It's a single number that gives lenders a quick-and-dirty idea of how creditworthy you are. The higher the score, the more trustworthy lenders think you are.

You can read more about how your score is computed -- and find out what's in your credit report -- here. It's a good idea to check this at least once a year anyway, to make sure the info is correct and that no one has stolen your identity.

What if my credit score is low?

The best thing you can do is to change the pattern by paying all your bills on time. Beyond that, check out these tips.

If you want assistance getting and interpreting your credit report, to make sure that the picture that prospective lenders and employers are getting of you is accurate, contact Consumer Credit Counseling Service on campus at 335-3239.