Consumer tip: Why your credit score is important

Have you been denied a credit card or quoted a high interest rate? If so, the likely culprit is your credit score. A credit score is used by creditors to predict your likelihood or ability to repay loans, credit card debt or even pay your rent. It can also affect interest rates you’re offered on extensions of credit. The better the score, the lower the interest rate. You may have multiple credit scores depending on the company that generated your score. Each company calculates credit scores using their own unique scoring model. Credit scores typically range from 300 to 850, the higher the better.

Some ways to increase your credit score include paying your loans and credit cards on time, not maxing out your credit limit, a long history of paying off creditors and not taking out too many lines of credit. As a general rule, don’t borrow more than you can repay in a timely manner.

More information at marincountyda.org or 415-473-6495