What’s in a number? Plenty.
Your FICO® (credit) score is one of the most important numbers you’ll ever have. A low score can keep you from getting approved for a loan or from being able to rent an apartment, and will probably cost you more in insurance premiums and can even prevent you from being considered for a job.
You’ve seen the phrasing “as low as” in front of loan rates, right? When creditors look at your score they are generally basing your “creditworthiness” (ability to pay them back) on your level of risk. The higher your credit score, the lower your risk. The lower your risk, the better your chances are of being approved for loans and receiving the best “as low as” loan rates.
Your credit score is made up of these five things:
Here is a general guideline for how creditors rate you based on your credit score:
Below credit score is for example only.
Your credit score is 689 out of 840
You have GOOD credit. Higher than at least 20% of the US
- Things you're doing well:
- You're paying your monthly balances.
- You have no late payments!
- You are reducing your high credit balances.
- You show you are a responsible borrower.
- Things for you to work on:
- Reduce your debt-to-income ratio.
- You have high balances on some of your accounts.
- The age of your accounts is below optimal risk. Keep your accounts open and continue to pay your balance off each month to build up your credit history.
Let us help you build your credit score.
Our team has the expert credit insights and lending experience to help you build your best credit score yet.
The good folks at FICO® have put together a handy guide called Understanding Your FICO®Score that thoroughly explains what your credit score means and how it impacts almost every facet of your life. We highly recommend that all of our members take some time to read this because of the excellent information it contains.
If you’ve experienced some setbacks that have damaged your credit score (even by things that were not your fault), or if you’re interested in improving your score, call us or drop by the branch. We know lots of proven ways to help you build from here.
Not a member yet? We’ll take care of that for you as you’re opening your account or taking out a loan. If you want to get a jump-start, enroll online or just give us a call at 978.328.5100. We’ll be happy to help you build from here.