Understand and improve your credit score

Your credit score, or FICO score, is a measure of your financial health. Below is more information about credit scores — and how you can improve yours.

Know what a credit score is. Your credit score helps a creditor evaluate your credit risk. The better your score, the better credit risk you are perceived to be.
Know if you have a credit score. You have a credit score if you have both of the following:
- At least one account that has been open for six months or more
- At least one account that has been updated within the last six months.
Understand how your credit score is determined. To determine your credit score, a credit reporting agency evaluates various components of your credit history, including the following:
- Payment history
- Outstanding credit owed
- Length of time your credit has been active
- Types of credit you have
- Acquisition of new credit
Be aware of what is considered a good credit score. A credit score can range from 300-850. Any score over 700 is considered excellent.
Understand that your credit score from each credit reporting agency may be different. This is because not all creditors report to all three agencies.
Improve your credit score. Increasing your credit score takes time but is worth the effort.
- Pay off your current debt.
- Make your payments on time.
- Don’t sign up for any more credit cards.
- Stop using your credit cards.
- Keep your oldest account open – even if you no longer use it.