Get Smart About Credit

How’s your credit?

If you don’t know the answer to that question, it’s time to get smart about credit. Fortunately, Bank of Luxemburg is here to help.

A great way to gain credit knowledge is to get a copy of your credit report. This shows your open lines of credit and gives you the opportunity to find out your credit score. This number helps lenders determine whether you should get certain loans, credit cards or services.

How is your credit score determined? The credit bureaus look at several factors:

• Amount of open credit you have available
• Types of credit you have
• Timeliness of your payments

Each credit-reporting agency has a slightly different version of your credit score, but these ranges will generally apply:

700 – 850: Very good or excellent
680 – 699: Good
620 – 679: Average or OK
580 – 619: Low
500 – 579: Poor
300 – 499: Bad

To improve your credit score, limit the number of credit cards you open and be aware of your open credit. It’s best to close those department store credit cards you’re not using.

The official website to get your free credit report is AnnualCreditReport.com. You also have the option to purchase your credit score when you receive your report.

Our $mart Banking page has a number of resources to help you get smart about credit. Click on Credit/Debit and you’ll be able to listen to several $mart Money podcasts. And you can always stop by your local Bank of Luxemburg with any questions.

Chief Operating Officer Rebecca Edler offers some more suggestions to get smart about credit in this video: