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What is a credit score?

A credit score is a number ranging from 300 to 850 that rates a consumer’s creditworthiness.

Financial Institutions use your credit score to determine your creditworthiness and often base interest rates for loans and credit cards on how high or low that number is.

Payment history, Total amount owed, Length of credit history, Types of credit, and credit inquiries are the main factors in determining your credit score.

Typically, a score of 680 or higher is considered good and will earn you the best interest rates, and a score of 550 or lower will often make getting approval difficult.

While some financial institutions determine your approval or denial exclusively by your credit score, at Ascentra your credit score is only one factor.  We listen to your story and help you make the best decision possible for your current situation and your future.

If your credit is considered low, we want to help you rebuild your score so you have more options and can pay less interest in the future.

So how can you improve your credit?

First, maintain on time payments. Create a budget and stick to it to help pay down your unsecured debt. The less debt you have, the more available credit and the better your score will typically be.

Next, consider consolidating your debt with a home equity loan, or secure the loan with other property. This will bring all your outstanding debts into one, easy-to-manage payment and make it easier for you to make progress.

Third, avoid new credit inquiries if possible. Each time you apply for a new credit card or loan, the financial institution will need to pull a credit report. These credit pulls can lower your score.,so make sure you plan ahead and don’t open any new lines of credit without considering the effects.

And lastly, manage credit card debt responsibly and keep your balance to 30% or less of your available credit.. It’s easy to spend with credit, but remember that you will pay interest. Keeping your debt below 30% of your available credit will help improve your score.

If you are looking to improve your credit, Ascentra can help. Our certified Financial Coaches are here to help you create a plan free of charge. We also offer a secured credit builder loan with a 6-12 month term to build your credit.

To learn more about improving your credit or creating a budget, feel free to set up an appointment to see an Ascentra Financial Counselor and see what Ascentra can do for you.