Why your Credit Score matters

News

ROCHESTER, N.Y. (WROC) — When it comes to purchasing power your credit score is a vital tool.

CPA Matt Bryant explained what a credit score is, how it’s calculated, and why it matter Thursday during News 8 at Sunrise.

“A credit score is a rating of how someone is likely to behave financially in the future based upon past behavior,” said Bryant.

Credit scoring models can range, but generally credit scores from 580 to 669 are considered fair, 670 to 739 good, 740 to 799 very good, and 800 and up excellent.

There are a number of factors that determine your credit score – payment history, amounts owed, length of credit history, new credit, and credit mix.

Wondering what your credit score is? Visit annualcreditreport.com.

Bryant said a higher credit score will increase the likelihood new credit is approved, result in higher credit granted and lower interest rates. When it comes to factors that influence your credit score, he said, “Payment history is the most important factor. Missed or late payments have a big negative impact.”

Here’s a list of the steps you can take to improve your credit score:

Review your free credit report and work to remove any incorrect items

Pay all of your bills on time

If you are having trouble paying your bills, reach out to ask for assistance
Some companies have been helping customer during the pandemic

Pay more than the minimum payment due

Pay down outstanding balances

Avoid new debt until your credit score improves.

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