Knowledge is the first step to a higher score. Here are clear answers to the questions we hear most. Still unsure about something? A free consultation is the best place to start.
Credit is when you receive money, a good or a service and agree to pay for it in the future, usually with added interest. People use credit for major purchases and everyday items. Used responsibly it can be a powerful tool. Misused, it carries lasting consequences.
A credit score is a 3 digit number on a scale of 300 to 850 that suggests how creditworthy you are. Lenders use it to decide the loans and credit cards they offer you. The two main scoring models are the FICO Score and VantageScore, both built from the information in your credit report.
A good credit score is generally anything above 670. The higher you climb, the better the rates and terms you tend to qualify for.
Anything below 670 is generally considered fair or poor credit, which can mean higher interest rates or being turned down for credit altogether.
Paying bills late, filing for bankruptcy or foreclosure, applying for too many new accounts, carrying high credit card balances, and ignoring inaccurate negative items on your report can all pull your score down.
Five factors shape your score: payment history, the amount you owe, the length of your credit history, your credit mix, and new credit. Paying on time, lowering balances, keeping healthy accounts open, and challenging inaccurate items all help your score over time.
Each of the three credit bureaus builds its own score from the information on its version of your report, and you also have a FICO Score. Because the underlying data can differ, your scores can differ too.
Credit scores range from 300 to 850.
The three main credit bureaus are Equifax, Experian and TransUnion. Your reports and scores can vary between them because each holds slightly different information. We work across all three on your behalf.
A credit bureau is a company that tracks your ability to pay. It gathers information about your financial habits and shares it with lenders and credit card companies.
Employers are allowed by federal law to see a modified version of your credit report for hiring and promotion decisions, so your credit can play a role in your career.
You will typically need at least a 620 to be approved for a traditional home loan, though a higher score earns you a better rate.
Requirements vary by lender and loan amount. Some lenders approve scores as low as 500, assuming you do not mind paying extra in interest.
Much like a car loan, approval is possible with scores as low as 500, but a lower score usually means paying more in interest.
Your credit report is generally only viewed by those considering lending you money, such as a bank, a car dealership or a credit card issuer.
