How to Get a good credit score

A good credit score can make a real difference in your life, whether it’s getting a loan, buying a car, or renting an apartment.

The Role of Credit Scores in Life

Credit scores help lenders determine, at a fundamental level, whether or not to give a loan to an individual. Many people and institutions use credit to evaluate an individual’s overall financial trustworthiness.

What is a Good Credit Score?

Your credit score is a number in the range from 300 to 850, and Americans with a credit score above 670 have a “good” credit score.

What Affects Your Credit Score?

Five main components make up your credit score. Each of them plays a role in determining what credit score you receive and how low your loan interest rate could be.

How to Improve? Get a Handle on Your Bill Payments

Organizing your bill payments so that you make every payment on time.


Don’t Use Up All Your Credit

One of the factors lenders consider when modeling an individual’s credit risk is their credit utilization — the percentage of total available credit a consumer is using month to month.


Consider Debt Consolidation

If you have various debt sources that need repaying, consider consolidating them all into one payment with a debt consolidation loan. Just be wary of debt consolidation fees as they can sometimes be upwards of 3% of the total loan amount.


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