What’s the point?

• There will be a time in life when you need to borrow money to pay for something.
• Most people borrow money (loans) for education, cars, houses, or even their daily purchases.
• To determine the amount of money a person can borrow at a certain interest rate, Lenders looking at their credit score.
• A credit score is a three-digit number, usually on a scale of 300 to 850.
• The number evaluates how likely you are to repay borrowed money and pay bills.

• A score of 720 or higher is generally considered excellent credit.
• A score between 690 and 719 is considered **good credit.**
• Scores between 630 and 689 are **fair credit.**
• And scores of 629 or below are poor credit.

In addition to your credit score, factors like your income and other debts may play a role in creditors' decisions about whether to approve your application.

What impacts credit score?

1. Paying bills and payments on time. Late payments will impact score drastically.

2. Credit utilization (how much of your credit limit you are using. It is best practice to keep utilization less than 30%…the lower the better.

   

Other factors that are weighted LESS (still important though):

1. How long you had your credit. The longer the credit and the higher average of accounts is better.
2. Have more than one type of credit (car loans, student loans, mortgage, credit card). Different types of credit are also called “lines of credit”.