Credit scores play an essential role in determining more than whether you qualify for a loan or a credit card.
Brittani Forbush with Mountain America joined us to talk more about the role your credit score plays.
She says in addition to helping you qualify for a loan or credit card, a good credit score can help you save money by getting a lower rate on loans.
Scores can also come into play when applying for jobs, purchasing a home, buying a car, renting apartments, setting up utilities, insurance rates and more.
Overall, credit scores can help you worry less about your financial situation.
Brittani told us there are ways to monitor your credit score. There are mobile banking apps and you can find more at Annualcreditreport.com
We also learned about how credit scores are measured including:
• Payment history (35%)
• Amounts owed (30%)
• Length of credit history (15%)
• New credit (10%)
• Credit mix (10%)
If you need to improve your credit score Brittani says there are things you can do:
• Pay on time, every time-payment history accounts for 35% of your overall credit score
• Don't max cards- stay under 30% of available balance
• Minimize existing debt
• Avoid opening/closing accounts
• Focus on paying down debt balances, not just moving debt between accounts
From now until July 31, Mountain America rewards card holders receive double points on all credit card purchases.
Visit macu.com/double to learn more.