Why Your Credit Score is Important

Below is a chart with approximate ranges for FICA-based credit scores.  Most credit scores fall between 600-750.

• Good credit:        700+
• Excellent credit:    800+

You can help improve your credit score with these simple tips that are easy to implement:

Keep your credit card balances low.
A major factor in determining your score is how much revolving credit (credit cards) you have versus the amount that you are using. Pay down your balances and keep your debt-to-credit ratio less than 30% will help improve your rating.

Pay your bills on time.
Late payments can negatively impact your score, so consider setting up automatic payments. Paying your bills on time over a period of time, will increase your credit score

Don’t open unnecessary accounts
New accounts lower your average account age, which will possibly lower your score. Instead, maintain your older accounts and keep balances low.

If you have been managing credit for a short time, don’t open new accounts too rapidly.

If you are a new credit user, rapid account buildup can look risky. Plus, remember new accounts will lower your average account age, which will have a larger effect on your scores if you don’t have a lot of other credit information.

If married, keep separate credit cards.
Keeping separate cards provides flexibility in transferring some or all of the balances to one spouse to increase the credit score of the other. This also provides the possibility of one spouse becoming the sole borrower without changing the ownership of the home.

Free credit report
You are eligible for a free credit report once every 12 months. Obtain a report and review it to see where you may need to concentrate your efforts.