What Does My Credit Score Mean?

Credit Score ScaleA credit score is a number calculated using information from your credit history.  A credit score represents your creditworthiness and indicates the likelihood that you will repay a debt as agreed.  Credit Scores are widely used by lenders.  A higher credit score increases your chances of getting approved for a loan and obtaining the best interest rate.

Here are ways that you can improve your credit score.

  1. Understand your credit score
    You are entitled to a free credit report once a year.  Go to AnnualCreditReport.com to pull your report.
  2. Pay your bills on time
    Sounds simple enough, but if you have trouble remembering this task, consider setting up email or text payment reminders with your creditors, or automatic bill payment.
  3. Pay at least the minimum on your credit card bill
    Pay more if you can.
  4. Correct errors on your credit report
    Look for things like incorrect listed late payments; contact the three credit rating agencies if you see discrepancies.
    Equifax at Equifax.com
    TransUnion at Transunion.com
    Experian at Experian.com
  5. Reduce your debt
    Create a plan to pay off your highest interest rate debts first while maintaining minimum payments on your other accounts.

Visit http://equifax.com/credit/ for more information on how to improve your credit score and pay off debt.