Keeping Score of Your Credit

Your credit score indicates how well you handle your credit and how risky it might be for a lender to loan you money. Ranging from approximately 300 to 850, your score directly affects the terms of credit you are likely to receive. And yes, the higher, the better. Your score is influenced by your payment history, credit utilization, types of credit used, new loans, and overall credit history.

Paying attention to your finances and ensuring you practice sound credit management will lead to a higher credit score and lower borrowing costs.

Other smart financial habits that will help improve your credit score include:

1. Living within your means
2. Using debt wisely
3. Paying all bills on time
4. Meeting credit card minimum payments

Are you curious about your credit score? Trusted online resources, such as Equifax and TransUnion, can give you your score, identify existing credit you may not be aware of, and offer suggestions to increase your score.

By being mindful of your credit and keeping an eye on your debts, you can save on interest costs and positively influence your future financial choices. Taking charge of your credit can lead to better opportunities and financial stability in the long run.

If you have questions about your credit score or need guidance on implementing one of the four financial habits mentioned above, give us a call!