A credit score measures the likelihood of a person’s credit worthiness. The scores range from 300 to 850. Credit card companies and lenders use credit scores to determine whether or not to give you a loan. Traditions First Bank has tips on how to increase your score.

Why is a good credit score important?

Having a good credit score makes your financial goals more manageable. It could mean the difference between qualifying for or being denied an important loan for a home mortgage, a car loan or a credit card. It could also mean a landlord not agreeing to rent you an apartment. Having a good credit score can get you a better interest rate which could mean thousands of dollars over the course of your home mortgage. A low credit score can also hinder hiring or promotion decisions.

What is a good credit score?

Most credit scores range from 300 to 850. A bad credit score would be from 300 - 549, while a poor credit score would be from 550 - 619. A good credit score would be from 680 - 739, and an excellent credit score would be from 740 - 850.

What affects a credit score?

Your credit score is affected by numerous factors, including payment history, using your credit limits, and the balances on your active credit. Credit inquiries and the number of accounts you have will also have an impact. These are the items that WON’T affect your credit score.

How do I improve my credit score?

There are several ways you can improve your credit score. First and foremost, you can clean up your credit report. You can  also pay down your balances, increase your credit limit, open a new account, negotiate outstanding balance, and make payments on time!