Unlock the Secrets of Your Credit Score: What You Need to Know
10/29/2024
By: Evergreen Certified Financial Counselors
It’s essential to understand how credit works and how to manage it responsibly.
There are three major credit bureaus: Experian, Equifax, and TransUnion. Each one may provide a slightly different score based on the unique information they collect.
You can access your credit reports from all three bureaus for free once a year, and it's smart to review them for accuracy.
What is a credit score?
Scores vary from 300-850. Your score helps financial institutions prove your ability to maintain and be responsible for debt.
Did you know the average credit score in Maine is 689? See how it compares:
- 720 or more: EXCELLENT
- 660-719: Average/Fair
- 620-659: Poor
- 620 or lower: Needs Work
Explore your score with CreditHub, available in Evergreen Credit Union Online and Mobile Banking!
Note: Using CreditHub does not affect your score and is a general snapshot. Inquire with one of Evergreen’s Certified Financial Counsellors to discover more!
Stay afloat and maintain a good score.
What makes up your actual credit score?
- Payment History (35%) – Always pay your bills on time.
- Credit Utilization (30%) – Keep your balances below 30% of your credit limit.
- Length of Credit History (15%) – Hold on to older accounts.
- New Credit (10%) – Avoid opening too many accounts at once.
- Credit Mix (10%) – A variety of credit types, such as loans and credit cards, is beneficial.
Credit score vs. Credit report: what’s the difference?
Your credit report is a detailed summary of your credit history. Your credit score is drawn upon that data. Find your annual free credit report at: annualcreditreport.com
Building and maintaining good credit is about consistent smart financial habits, not avoiding credit or having a high income. Understanding credit reports and credit scores is crucial because they directly affect your financial health and opportunities.
