Practical information to understand your credit score and credit reports so you can continuously improve them.
Your credit score is fluid and there are several factors that influence it. Here are some of the more critical factors.
– Timely bill payment history (35% of the decision often comes down to this)
– Type and number of accounts open
– Amount of available credit used
– Debt amounts outstanding
– Length of credit history
The CFPB offers a free credit report by clicking here.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.*
While there is no magic formula, there are certainly steps you can take to establish good credit and improve your credit score including*
– Fact check your credit reports
– Pay your bills on time
– Use 30% or less of your available credit
– Limit requests for new credit
– Keep your old accounts open and deal with delinquencies.
– Consider consolidating your debt.
– Track your progress with credit monitoring.
There are a lot of myths around credit scores. And because it tends to be an intimidating and not fun topic, we sometimes believe the myths as truth.
Educate yourself on what’s truth and what’s false so you can improve your financial health and the financial future of your family.
A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts.*
CREDIT REPORTS CONTAIN THE FOLLOWING INFORMATION:**
– Personal information like name, address, DOB, and social security number
– Current and historical credit accounts, including the type of account (mortgage, installment, revolving, etc.) limits, balances, payment history, and collections
– Public records such as liens, foreclosures, bankruptcies, civil suits, child support payments