What Does Your Credit Score Say About You?
What Does Your Credit Score Say About You? Whether you are looking to buy a car, reﬁnance a mortgage or rent an apartment for the ﬁrst time, your credit score can tell a lot about your ﬁnancial history. Your FICO® score is a rating based on your credit history. It helps lenders evaluate your credit risk. Several factors go into your score, including payment history, amounts owed, length of credit history and types of credit used.
What’s a Good Credit Score?
A good credit score is rated on a scale of 300-850. A high score means a better credit rating that can help you get better rates on car loans, mortgages and credit cards. To improve your credit score, follow these tips:
- Keep current on all your payments. This is the best way to boost your credit score. Pay your bills on time each month.
- Avoid closing old accounts. It lowers your total available credit and can lower your score.
- Don’t open new accounts. This can look like you plan to borrow a lot of money, which could stretch your ﬁnances too thin.
- Settle all ﬁnes and tickets. An outstanding library ﬁne or parking ticket can reduce your score if a collection agency gets involved.
- Check your credit report for errors. Your credit score is based on the information included in your credit report, so review it for inaccuracies. You are entitled by law to a free copy of your report once every 12 months from each of the three major credit bureaus.
Need more help? Stop by any branch or call 845-561-5607 for a Free Credit Score Check from HHFCU.