Have You Checked Your Credit Score Lately? | St. Johns Bank
Are you in the know about your credit?
You should be reviewing your credit reports regularly—at least once per year. It’s also good to have a handle on where your credit score lands, so you’ll know whether you’re likely to be approved for new credit or not.
Our team at St. Johns Bank wants to offer some insight into credit scoring, as well as how you boost your score.
Why Is a Good Credit Score Important?
A credit score is important because it helps determine whether you can get a loan (such as for a house or car), as well as the rate on the loan. There are a number of factors that make up your credit score, such as:
- Amounts owed
- Length of credit history
- Debt-to-credit ratio
- Payment history
- Types of credit used
While you might not feel like you have much control over your credit score, you actually do. In fact, you can start taking steps today to improve your credit score.
Take Control of Your Credit Score
Credit scores vary somewhat depending on which credit agency is doing the scoring.
Although most people have credit scores between 600 and 750, the higher the better. Start improving your credit score by:
Making sure you pay your bills on time—or even early! On-time payments are an essential component of a solid credit score.
Second, if you have any debt, pay it off if possible. But the trick is, even after you’ve paid off the debt, you don’t want to close the accounts. Doing so would ding your debt-to-credit ratio, so it’s better to keep accounts open with a low balance or no balance at all.
It’s also important to review your credit reports regularly, as we mentioned above. Doing so will allow you to spot any errors or fraudulent activity, which you can have removed.
Finally, you also want to make sure you are not opening a bunch of accounts. Be thoughtful about the credit lines you open, and only open new credit when there’s truly a need.
Are you looking to purchase a home or car in the future? Be sure to check out the loan options available through St. Johns Bank before making your purchase!