Your creditworthiness is more important than ever. Your credit score can save you hundreds or thousands of dollars in interest on loans, help you to get into a rental property or home and save you money on insurance premiums. It pays to know what your score is and how you can improve it.
What is a credit score?
Credit scores are based largely on reports from lenders and retailers and are used as an indicator of how likely you are to repay your loan. Your score will also determine a loan’s rate and term. The better your score, the better rate you will receive.
What is a “good” credit score?
Credit scores usually range from 400 to 830. The higher the score, the better the credit. Each financial institution assigns a credit score range from poor risk to good risk. On average, a score of 650 or higher is considered a good score.
Here’s what influences your credit score:
- Payment history: 35%
- The amount of credit used compared to the credit available: 30%
- Length of credit history: 15%
- Mix of credit: 10%
- New debt: 10%
Still have questions?
Heritage offers complimentary, no obligation credit report reviews. Our staff will examine your report with you and answer your questions, plus they may even find ways to save you money.