Credit scores play an important role in your financial well-being, but many people don’t understand how they work. Do you?
Banks and other lending institutions use scores to determine whether to extend credit to individuals and at what rate.
Credit scores range from 300-850. “Good” credit scores are in the high 600s-700s. Scores under 600 may prove problematic.
To maintain a good score, the Consumer Financial Protection Bureau offers these tips:
- Pay your bills on time
- Keep the balance on your credit cards at 30 percent of the maximum limit, and don’t exceed this
- Don’t cancel your credit cards
- Check your credit report annually for errors
You can obtain a free credit report every 12 months through AnnualCreditReport.com.
The Financial Wellness LiteBlue page has additional information to help you manage your finances.