Credit Scores

What is a credit score?

A credit score is a number assigned to you that lenders use to decide whether or not to give you a loan or not and how favorable the terms of said loan are. a credit score below 600 is low, from 600-700 is okay and above 700 is typically good enough to get most loans and favorable rates. Especially as you get over 750.

What determines my credit score?

A lot of factors go into a credit score. Some make sense, some don’t. The most important thing to keep your credit score up is to consistently make your payments on time. Over time, your credit score will naturally increase. Late payments will destroy your credit score very fast and make it difficult to raise it back up.

How can I raise my credit score?

As I previously mentioned, making payments consistently on time is the only thing you should need to do to get and keep your credit score up. Credit score really isn’t that important and I wouldn’t advocate doing anything out of your way to increase it. As long as you have never missed payments, your credit score should be good enough for whatever you need. Unless you simply don’t have a credit history at all. If you did miss some payments and end up with a lower credit score and need a quick bump, increasing your available credit limit will do just that. This can come in the form of increasing your credit card limit or opening a line of credit, among other things. The larger the available credit increase, the larger the bump in credit score will be.

How can I check my credit score?

Many banking apps have ways to check your credit score these days. You can also request it from credit institutions such as equifax or transunion. These are the same institutions you report any errors or security concerns about your credit to.