What is credit?

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     Credit is when you receive money, a good or a service, and agree to pay it in the future- usually with added interest. Nowadays, we use credit to buy lots of things, from houses and cars to groceries and clothing.

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     If you use it responsibly, credit can be a useful tool. But if you don't, you'll have to face some negative consequences that will make your life harder.

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What is a credit score?

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       Your credit score is a 3-digit number on a scale of 300 to 850 that suggests how creditworthy you are- meaning, how good you are with credit and how much you can be trusted to pay back what you borrow. Potential lenders will use this number to decide what kinds of credit cards and loans to offer you. Generally, the higher the score, the better the offers.

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What is a good credit score?

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      Generally speaking, there are five tiers of credit score. A good credit score is anything above 670.

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What is a bed credit score?

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       Anything below 670 is considered poor or only fair credit.

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What actions hurt my credit?

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       Your credit can be brought down a lot faster than it can be brought up, so it might help to review these things that can hurt your credit:

          - Not paying bills on time

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          - Filling for bankruptcy or foreclosure

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          - Applying for too many credit accounts

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          - Carrying high balances on your credit cards

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          - Ignoring questionable negative items on your report

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How can I improve my credit?

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        There are five main contributors to your credit score-payment history, amount of debt, length of credit history, credit mix and new credit. Managing your credit wisely by paying your bills on time, paying debt down and maintaining your current accounts could improve your score.