What is a credit score?

When you apply for a credit card, loans and even mortgage, creditors look at a three-digit number to represent your creditworthiness.

A credit score rates your credit risk. It helps determine whether to give you credit, decide the terms, or the interest rate.

How is a credit score calculated?

A credit score is comprised of five areas: Payment history, amounts owed, length of credit history, applications of new credit accounts, and types of credit accounts. Most credit scores range from 300 to 850.

What impacts my credit score?

There are many ways you can establish or maintain your credit score:

• Pay your bills on time. This does include credit card payments. Late or missed payments on other accounts such as cell phones, may be reported to the credit bureaus.
• Pay off your debts. Try to pay it off as quickly as you can.
• Keep your credit card balance below the limit. Higher balances than your credit limit may impact your score.
• Check your credit reports regularly. Request a copy of your credit report and review it to make sure your information is correct.

What is my credit score?

You can purchase your credit report from several sources including Experian, Equifax, and TransUnion. If you have a credit card, the company may give it to you for free. You are entitled to one free credit report every 12 months as per Federal law.

The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.