One "Game of Life" Score You Don't Want to Blow

Your credit score is quite possibly one of your most significant scores, influencing your ability to secure loans, mortgages, and favorable interest rates. A higher score creates better financial opportunities and reflects responsible financial behavior.

To “win” a good score, you must start by understanding the factors contributing to it. Here are the main factors to consider:

Payment History: Timely payments positively impact your score.

Credit Utilization: Also called "debt to income ratio" this is the amount of credit and/or debt you have based on your income level. 

Length of Credit History: Credit takes time to build so it's important to have regular credit sources with history.

Credit Mix: Diversify your credit types with a mix of credit cards and installment loans.

New Credit: Avoid opening multiple new accounts in a short period. Each credit pull impacts your score. 

This illustration from Napkin Finance shows the ins and outs of how credit scores are impacted:

Building your credit score is a gradual process, but you can steadily build your best score with consistent effort and responsible financial habits. This not only enhances your financial standing but also positions you for more favorable terms and opportunities in the future.

Let us know if you have questions, we'd be happy to send you additional resources!