Financial education news and updates from the Washington State Department of Financial Institutions.
How Credit Scores Really Work
A credit score can only be calculated when there is enough information in a credit report to generate one. Once that information is available, a scoring model looks at the credit history and turns it into a number. Think of it somewhat like a weighted grade point average. A GPA combines many…
No Credit History? You're Not Alone
No credit isn't the same thing as bad credit. But when there is little or no credit history to review, it can still limit our choices. A person with little credit history may have trouble qualifying for a loan or credit card. They may have fewer options or need a larger security deposit or a co-…
When Your Credit Report Looks Wrong
It's easy to jump to the worst conclusion. It's also easy to put the report aside and tell ourselves we'll look into it later. Neither is a particularly good response. An unfamiliar item doesn't automatically mean identity theft. Financial companies sometimes use names that are different from the…
What’s Actually on Your Credit Report?
A useful way to think about a credit report is as a kind of report card. It records information about how we've handled credit, but it doesn't tell the whole story about us. A school report card might show how someone performed in a few classes, but it doesn't tell us whether that person is a good…
Why Credit Histories Matter
When a lender doesn't know us personally, they need another way to decide how much risk they're taking on by lending money to us. That raises the next question: How do they decide whether to trust us? For many financial decisions, one of the tools they use is our credit history.When a financial…
When Something Goes Wrong: Knowing Where to Turn
Not very long ago, most people had a fairly short list of financial relationships. They might have had a checking account, a credit card, and a utility company to pay each month. Today, many of us move money through banks, credit unions, payment apps, online retailers, subscription services, money…
How We Pay Matters
Every generation has found a way to make paying someone a little easier. But as we’ll see here, easier is not always better. There was a time when nearly every transaction happened with cash. If you didn't have enough in your wallet, the purchase waited. Checks made it possible to pay without…
What Credit Is and Isn't
When Marcus found an apartment he could afford, he thought the hardest part was over. He had a steady job, enough money saved for the security deposit, and good references from previous landlords. Then the property manager asked for permission to check his credit. Marcus hesitated. "I've never…
A Fee for All Seasons
We might think paying $3 here or $5 there doesn’t add up, but small fees can quietly drain hundreds of dollars a year. Luis didn’t notice it at first. He uses a prepaid card to manage his money. It feels straightforward: load cash, pay bills, withdraw when needed. But each time he adds money,…
Are Your Funds Insured?
Your money may look safe in an account—but what if the company holding it suddenly went out of business? A few years ago, Anna had about $800 in her credit union account. She didn’t think much about where the money was held. It was just where her paycheck went and where her bills came from.…