Understanding your Credit

You are most likely already familiar with the concept of "credit," the reputation for paying your bills on time that makes it possible for you to obtain money or goods with the understanding that you will pay for them later.

But even if you use your credit every day, you may have questions about the credit industry and how it affects you. In today's society, credit is much more complicated than keeping a tally at the local grocery. As a consumer, you need to know how credit reporting works and what your credit report contains.

Take Advantage of a credit report

Credit scoring is a method used by lenders to help decide whether or not you are a good candidate for a loan.

Lenders employ a credit scoring system to determine your credit score:

• Compares information in your credit report to the performance of consumers who have similar credit characteristics.

• Examines many credit characteristics including your payment history, the number and kind of accounts you have, the number and frequency of late payments, and any collections or bankruptcies.

Generally speaking, positive credit characteristics make your score higher and help you to qualify for better loans. Negative characteristics make your score lower and may interfere with your ability to qualify for the best loan terms.

Check your Credit Score Above by clicking on the banner!