Credit scores, also known as FICO scores, are numerical rankings meant to reflect an individual’s creditworthiness. In other words, these scores are meant to show credit issuers how likely you are to repay debt.

FICO scores were first developed in the 1930s by Manhattan department stores looking for a way to verify the credibility of customers seeking to purchase items on layaway. Since then, though, these scores have gained a much greater significance.

Your score will vary depending on which of the three national credit bureaus—Equifax, Experian, or TransUnion—you pull your score from, but the difference will be insignificant. Your score with each of these entities will be based on how consistently you meet payments on your lines of credit.

"Being attentive is the best thing you can do for your own credit score."

A score of 620, for instance, typically indicates 12 consecutive months’ worth of on-time bill payment. Anything below 680 is considered sub-prime, but anything below 620 is like having a score of zero. You will have a very hard time getting approved for any line of credit unless you surpass this threshold. To have truly excellent credit, meanwhile, you need to have a score at or above 720.

If your credit isn’t exactly where you’d like it to be, don’t panic; this is incredibly common. Most people have a credit score that’s far from ideal. And, thankfully, there are a number of ways to improve your score. For one, pay close attention to your credit limits, as exceeding them will hurt your score.

Ultimately, being attentive is the best thing you can do for your own credit score. If you have any specific questions about how to improve your score, or about any related topics, feel free to give me a call or send me an email. I look forward to hearing from you soon.