Credit, credit, credit. We hear this word all the time, but what does it actually entail? Your credit score is a key factor in many life decisions, so it’s important to understand what it means.

Credit Report vs. Credit Score

Credit Report: Your credit report is a record of your credit payment history, and it includes your identifying information, account history, public records and any inquires. Here is a breakdown of the report:

• Identifying information (name, date of birth, address, etc.)
• Account history (issuer, date opened, credit limit, balance, payment history, etc.)
• Public records (tax liens, bankruptcy records, etc.)
• Inquires (record of businesses/lenders that have reviewed your credit history; stay on your record for two years)

Credit Score: Your credit score is a number that reflects the likelihood of you paying back any debt that you owe. It is calculated from your credit history and how you manage your current debt. The credit score range is 300-850, with 850 being the best and you want to aim for your score to be at least 620 or above.

Reviewing Your Credit Report

Reviewing your credit report on a regular basis is a smart financial decision. The information in these reports are used to determine your qualification and interest rates for your loans. Make sure to always check for errors, as removing errors has a positive impact on your score.

How to Improve Your Credit

Here are 10 tips to remember that can help improve your credit if you find that your score is towards the lower portion of the range. Make sure to:

• Make all monthly payments
• Make all payments on time
• Keep a close eye on your credit report
• Avoid closing old lines of credit
• Increase your line of credit cautiously
• Open new credit lines wisely
• Save your money so you have an emergency fund
• Maintain low balances
• Beware of credit-repair scams
• Take advantage of other resources, such as major credit bureaus’ websites.

Reviewed April 2025

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.