So...what exactly is a credit score, and how is it determined? A credit score is a number based on the information reported by credit grantors in your credit file. The higher the score, the easier your access to lower cost credit is. How does your credit measure up?
EXCELLENT 770 and above
ACCESS TO CREDIT UNLIKELY 580 and below
Your credit score is determined or derived from how you use you open lines of credit using this weighting system:
PAYMENT HISTORY 35%
AMOUNT OWED 30%
LENGTH OF CREDIT HISTORY 15%
NEW CREDIT 10%
TYPES OF CREDIT USED 10%
Your credit score can affect you when applying for insurance and even a job! Casualty Insurance Companies (home and auto) view the way you use and access credit as a predictive measure for the likelihood that you will have a claim. Some jobs require a credit check as part of the job application process. Yet another reason to mark it on your calendar - monitor your credit report annually!
Learn more in the Credit Education section of our web site.