You regularly hear “have a good credit score” or “keep your credit up” but what does it mean to have good credit? And what do credit scores do for you? Let’s find out!
Why do you need a credit score?
Lenders use credit scores to determine if you are financially responsible and reliable when it comes to paying off your debts. The better your credit score is the more it will work for you. Good credit, considered a FICO score 700 and above, gives access to lower interest rates, betters terms and access on loan products, better Credit Card rewards, insurance discounts, and more housing options.
No Credit is Not Good Credit
If you have never used credit before, you don’t start with good credit. It’s a little like driving a car, nobody knows if you are a good driver if you never drive. Becoming a good driver takes time and practice, and the same goes for credit. Using it responsibly over time allows your credit score to increase as you show responsible use.
Credit Score Tool
Don’t wait until you are ready to buy a house or apply for a loan to start improving your score. Chelsea Groton customers have access to Credit Score powered by SavvyMoney, available at no cost through Chelsea Groton Bank’s online and mobile banking platform. Credit Score provides daily score updates, financial tips, and education on ways to improve your score. It’s a powerful tool to monitor and improve your score continuously.
Interested in learning more about credit? Register to attend an upcoming credit class.
