#raisemyscore

Sherpa Sense:

Make your credit score great again – credit score essentials!

Let’s Yak:

Your credit score is reported by 3 independent credit bureaus (Experian, TransUnion, and Equifax) and represents your credit worthiness as an individual.  

FICO (Fair Isaac Corp) credit scores range from 300 to 850. A lower score means you are a higher risk for not paying your bills or loans → consequently you will pay higher interest rates for loans, credit cards, and even insurance rates. “Good” credit scores are generally above 700.  Below 640 is considered “sub-prime”; think higher interest rates and/or larger down payments, more expensive car and home insurance, etc.

Items that determine your credit score: Paying your monthly bills, your current amount of debt, the length of your credit history, diversity of credit types (e.g. car loan, credit card, etc), and how many credit applications are made on your behalf. This includes anything that requires a credit check: applying for a credit card, changing cell phone plans, etc. This does not include student, auto, or home loans.

Ways to improve your credit score. Pay all of your bills on time, every time. Keep your credit utilization low, meaning only use 1/3 of your available credit limits on your CCs. Be sure to pay off old debt or collections. Build some credit diversity by getting a credit card or car loan; but make sure to make your payments on time.  

Take a Hike:

Set up automatic payments or reminders for all of your monthly bills or loans and pay them on time! Do it today! Late payments have a mega-impact on your credit score!