Let’s be real—understanding your credit score can feel like decoding another language. APRs, utilization rates, FICO vs. VantageScore? It’s giving… math trauma. But here’s the thing: knowing how credit works is essential, especially for Latinas who are out here trying to build generational wealth, launch businesses, buy homes, and not be penalized for simply not being taught this in school.

April is Financial Literacy Month, and we’re teaming up with SUMA Wealth to make the whole money thing a little less intimidating. Because, while your credit score is just a number, it can make or break some of life’s biggest moments.

So What Exactly Is a Credit Score—and Why Should You Care?

Your credit score is basically your financial reputation. It tells lenders if you’re trustworthy enough to lend money to—whether that’s a credit card, car loan, apartment lease, or mortgage. According to The Penny Hoarder, your score falls somewhere between 300 and 850, and the higher, the better.

This three-digit number is calculated based on factors such as how often you pay your bills on time, the amount of debt you carry, and the length of time you’ve been using credit. But here’s the plot twist: there isn’t just one score.

Credit Score Breakdown: FICO vs. VantageScore

Think of this like the arepa vs. gordita of finance—similar at first glance, but with key differences once you bite in.

The FICO Score (FICO 8) is the OG. According to The Penny Hoarder, it’s what most lenders and banks use. To even get a FICO score, you need to have had credit for at least six months.

Here’s the FICO breakdown:

  • Payment history (35%)
  • Amounts owed (30%)
  • Length of credit history (15%)
  • New credit (10%)
  • Credit mix (10%)

VantageScore, on the other hand, was developed by the three major credit bureaus: Equifax, TransUnion, and Experian. You can get this score even if you’ve had credit for as little as one month, which makes it great if you’re just getting started.

The VantageScore 4.0 mix looks like this:

  • Payment history (40%)
  • Depth of credit (21%)
  • Utilization (20%)
  • Balances (11%)
  • Recent credit (5%)
  • Available credit (3%)

SUMA breaks it down perfectly: VantageScore is like that first taste of credit, while FICO is the one you’ll need for the big stuff, like a mortgage or major loan.

Debt Is Real—But You Can Tackle It

Americans collectively owe over $1 trillion in credit card debt, CNBC reports. Gen X holds the most, with an average of $9,123, while Millennials and Gen Z have seen their debt rise by 14-15% in the last year.

But SUMA reminds us: we’ve got strategies. Two of the most popular ways to pay down debt are:

  • Snowball Method: Start by paying off your smallest debts first. It builds momentum, like leveling up in your favorite video game.
  • Avalanche Method: Tackle the debts with the highest interest rates first to save money over time.

No matter which method you choose, the key is consistency and knowing that you’re not alone.

How to Improve Your Credit Score Without Losing Your Mind

Improving your credit doesn’t have to mean doing the most. Think of it like making guacamole— yes, really. When the ingredients are right—steady payments, low debt, a healthy credit mix—it just works.

Here’s what you can do right now:

  • Make payments on time: This is the biggest factor in both scores. Set reminders if you need to.
  • Keep your credit utilization under 30%: If you have a $1,000 limit, try not to go over $300.
  • Avoid opening too many new accounts at once: It can make lenders nervous.
  • Check your credit reports regularly: You can get a free copy every year from each of the three bureaus at AnnualCreditReport.com.

You’re the One in Control of Your Credit Score

This isn’t about perfection—it’s about power. SUMA says it best: “Don’t live in ignorance of how your credit score can impact your life. Instead, learn how you can leverage it to make your wealth-building journey easier.”

Just remember: you can do both. You can break down debt and build up your credit. You can shift the financial narrative for yourself and your comunidad.

Credit is just a number. But what you do with it? That’s the real flex.

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