Break down your credit score (and build it up too)

Just starting out or working to rebuild your credit? A strong credit score can unlock better interest rates and financial opportunities - and it's not as complicated as it seems.

Your credit score gives lenders insight into your financial habits and helps determine what types of loans and terms you qualify for. At Abound, we're here to help you take full advantage of the benefits a healthy score can bring.

Understanding your credit score is the key to building it - and we're here to help guide you.

1. Payment history: Your payment history is the most important factor of your credit score. Making your payments on time shows lenders you're a dependable borrower. Even one missed payment can negatively impact your score. You can set up automatic payments to stay on track.
2. Amounts owed: This refers to the total amount of available credit you're using. It's good practice to keep your credit utilization below 30%. Low credit utilization shows you can manage your accounts responsibly without relying too heavily on credit.
3. Length of credit history: The longer your accounts stay active and in good standing, the better. That's why keeping a revolving line open - like a credit card - is beneficial. Our Classic Visa^® is a low-interest option designed to help you build a solid credit foundation. 
4. Credit mix: This refers to the variety of credit accounts you have, including both revolving and installment lines. Having a healthy credit mix shows lenders you can manage different types of financial responsibilities.
5. New credit: Every time you apply for new credit, a hard inquiry will appear on your report. While a few are okay, too many in a short time can hurt your score. It is important to be mindful when you're applying for new credit lines.

Apply online of visit your local branch to speak with our friendly team about hour our  Classic Visa^® can help you build credit with confidence.