- Financial Advice, Credit Score, Smart Financial Goals
- May 02, 2022
- FCU Team
It’s common to find yourself in a challenging credit situation. Between store credit cards, loans and debt, developing bad credit can be a fast and slippery slope. While a less-than-ideal credit score can make you feel defeated, remember that there are actions you can take to revive your credit score and get your finances back on track. Keep reading to learn more about what your credit score means and how you can take meaningful steps to a better score.
What Is a Bad Credit Score?
The first step to assessing your credit score is understanding the scale used and the ranges for poor to excellent credit. FICO® credit scores are most often used by lenders to determine your credit health. The scale ranges from 300 to 900 (or 850 depending on which kind of credit score model) and anything beneath 670 is considered “poor credit.” Ideally, you want to have a credit score that falls in the 670 to 900 range.
Why Do I Need Good Credit?
Having a good score can make your financial life easier and less expensive. Some of the benefits to a high FICO® credit score include, but are not limited to:
What Impacts My Credit Score?
We’ve talked a little about what a good credit score looks like and how it can affect your day-to-day life, but what is a credit score based on? Your score is composed of five categories:
Steps to a Better Credit Score
Now that you understand what a credit score is and its value to your financial health, let’s figure out how to improve a poor credit score.
Bad credit can happen to anyone, so you shouldn’t feel discouraged. It’s never too late to change your credit score, especially if you keep the following tips in mind:
How Long Will It Take?
Rome wasn’t built in a day, and, unfortunately, good credit doesn’t happen overnight. Rather, it’s a combination of actions over time that will help you achieve the credit score you want. However, if you continue to pay your bills on time, pay down your debt and take the steps we discussed, you can improve your credit score and open new doors for your future.
We’re Here to Help
For more helpful tips and tricks on how to manage your credit score and improve your finances, visit a branch or call to speak to one of our member service representatives about your financial needs. Be sure to ask about a free credit report analysis!
Florida Credit Union is a full-service financial institution. Founded in 1954 as the Alachua County Teachers’ Credit Union, FCU now services over 130,000 members in 48 counties throughout North and Central Florida. For more information on the services we provide, visit FLCU.org or call us at 1-800-284-1144.
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