How important is your credit score? If you want to borrow money, it can mean the difference between an affordable option and no option at all. If you buy a house or a car, or your child is applying for a credit card for the first time, chances are a lender will request a credit score before making a decision.
One of the most well-known credit scorers is FICO® (Fair Isaac Corporation). It uses a range of 300 to 850 to score credit risk:
||740 - 799
||670 - 739
||580 - 669
Don't assume that just because your score falls in a certain range, a lender won’t talk to you. Everyone’s rules are different: One lender may approve only customers with the highest numbers, while another may offer a lower interest rate depending on your score.
According to FICO®, there are three things you can do right now to help your credit score:
For more information on credit ratings, visit www.usa.gov/credit-reports. For tips on reducing debt and investing in your future, contact your financial advisor.
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