How Can Your Credit Score Help You?

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A good credit score can unlock many benefits. Let’s talk about some of the ways your credit score can help you.

What is a good credit score?

Most lenders use the FICO® Score model to calculate a person’s credit. These scores range from 300 to 850. Most lenders look favorably at FICO® Scores of 700 or higher.

• Exceptional credit scores are 800-850.
• Very good credit scores are 740-799.
• Good credit scores are 670-739.
• Fair credit scores are 580-669.
• Poor credit scores are 579 or lower.

The three major credit reporting agencies calculate your score by looking at your payment history, credit history, and outstanding balances. They’ll also consider any applications for new credit accounts. The types of credit accounts you have open (like mortgages and credit cards) are a factor as well.

Why do you want a good credit score?

A good credit score can help you in many ways. The benefits of having a good credit score include:

• Better interest rates
• Greater access to loans
• More favorable loan terms
• Insurance discounts

Lenders look at credit before issuing a loan, but they aren’t the only decision-makers who care about your FICO® Score. Landlords and property management companies also prefer tenants with higher credit scores. And utility companies may even waive your security deposit if your credit score is high enough.

How can you improve your credit score?

The best way to improve your credit score is to prove that you can handle your credit responsibly. To strengthen your credit, keep a low card balance and make your payments on time.

You’ll also want to pay off any past-due accounts and limit new credit applications to at least every 90 days. Good practices like these can give you a leg up in many situations.

Learn more about your credit score

Please contact us with questions or for more information on how your credit score can help you.