Author: Matt Lee, VP/Loan Officer, NMLS #489528

What’s my credit score? Is it good? How do I raise my credit score? Does my credit score affect my loan? These are questions I frequently encounter as a loan officer at PremierBank.

Credit scoring is a powerful tool used to measure how you handle your finances. A higher credit score signals less risk to a financial institution, which correlates with better interest rates and more money saved over time. On the other hand, a lower credit score may prevent you from buying the house you’ve fallen in love with, financing a new car, or securing other types of credit needed to pay for renovation projects or big-ticket items.

Whether you’re looking to build, boost, or maintain your credit, here are some essential tips to help guide you:

Building credit from scratch:

• Ask a family member with good credit to add you as an authorized user on their credit card.
• Open a secured credit card or store charge card.
• Apply for a small personal loan or credit-builder loan.
• Ask someone with good to excellent credit to co-sign your first vehicle loan.

Improving your credit score:

• Pay obligations on time.
• Pay off your credit cards in full each month or try to keep your credit card balances at 30% or less of your credit limits.
• Work on paying off any accounts in collections.
• Aim for a healthy mix of credit types, such as revolving credit (credit cards/lines of credit) and installment loans (auto, mortgage, student loans).
• Monitor your credit to better understand how your actions affect your credit score.
• Avoid having your credit pulled too frequently within a short period.

Maintaining your credit score:

• Continue monitoring your credit scores using the free tools provided by many financial institutions and credit card companies.
• Continue paying your bills on time and focus on reducing your overall debt.
• Use your credit cards occasionally and pay them off regularly.
• Since the age of credit accounts is a factor in credit score calculations, keep older credit cards open and use them sparingly.

Remember that your credit scores are calculated based on payment history, amounts owed, length of time the accounts have been open, recent debts, and credit mix. Scores can change daily based on your financial activities. Consistently making payments on time and keeping your debt levels low are key to achieving and maintaining a healthy credit score.

At PremierBank, we’re here to support your financial wellness journey with 24/7 access to your VantageScore 3.0 credit score through My Credit Manager, a free tool to track your score.

Our lending team is here to assist you! Whether you’re working to improve your credit score or preparing to make a big purchase, we’re here to help you through that process. Let us know if we can assist you in exploring your options to find the right loan solution to support your goals.

NMLS #470214