the easiest way to explain credit scoring and how it works is that .....

any time you get a loan from a bank or have bills that you pay, this goes on a report to a credit report company. this information goes into a computer and the computer attaches a "score" based on how much debt you have vs how much you paid back your loans and bills .

you will ..............not.............. have any credit score if you are not paying any bills, have not gotten a bank loan. and have no credit cards.

you build a credit score by ...

getting a credit card, purchasing something using that credit card and then paying the credit card bill. paying the bill on time and in full will get you a good credit history, not paying the credit card bill will get you bad , poor credit history.

anytime you purchase or do something where you will have a bill to pay, and you pay your bills on time it will get you good score, not paying the bills will get you a bad/ poor score.

why do places like stores, banks, rental managers/ landlords check your credit score... they want to know whether you will pay your bills with them. a bad score tells them you are a debt risk and a good score says you will most likely pay your bills on time.

if you have no credit history yet (which is what most young adults are at, just leaving their parents homes to rent on their own, or college student on their own for the first time) there is ways to build a good credit history. america has prepaid debit cards where you go into a store, purchase the card and "upload" money onto this card, then pay using this debit card instead of carrying around cash.

many stores have credit card applications... almost everyone with no credit history gets approved for store credit cards, and sometimes even those with bad credit history will too. stores understand that people want to build a credit history and clean up their past credit history. after you have a store credit card use the card to purchase with the card something you already know you have the money for, then set that cash aside, when you get the bill pay it in full. this will build good credit history.