A lot of people don’t know what a credit score is or why it’s important, so we’re here to help. A credit score is a number roughly between 300 and 850 that gives a lender a better understanding of if you should be given credit or a loan - the higher the number, the better. And sometimes, if you have a good credit score, you may be eligible for a better interest rate when applying for a loan.
Many factors contribute to your credit score. It can vary dramatically based on your payment history, your credit usage, your total credit balances, the age of your credit, and if you’ve recently applied for more credit. And it can change daily. Typically, a credit score of 700 or above is considered good.
If you’re looking to improve your credit score, here’s a few tips:
- First thing’s first; make sure all your payments are made on time.
- Just because you’re approved for a certain credit limit, doesn’t mean you need to use all of it! Having a low credit usage percentage tells lenders that you’re more likely to make payments on time.
- Don’t open more lines of credit than you actually need. It’s important to show that you have a good credit history over time, so when you continue to add more accounts, your credit score can suffer.
Curious about your credit score? You are able to check it within online banking or our mobile app for free! Sometimes, checking it can negatively affect your credit score – like when you apply for a credit card or a loan. But when you simply check it within our online banking or mobile app, we call it a soft pull – which doesn’t affect your score at all! So, you can check it as often as you want, without the concern of lowering your score.
If you have any further questions about credit scores, contact us!