Why your credit score matters

Have you ever been denied a credit card or quoted a higher-than-advertised interest rate? If so, the reason is probably due to your credit score. A credit score is a number used by lenders of credit to determine your chance of paying back a loan or whether to extend credit. It can also affect the interest rate you pay and how much you can borrow. You may have multiple credit scores depending on the company that generated the score based on the information in your credit reports.

Each company calculates credit scores using their own unique scoring version to determine your score. Credit scores typically range from 300 to 850, the higher the better.

Examples of ways to increase your credit score include paying your debts on time, not maxing out your credit limit, a long history of paying off creditors and not taking out too many lines of credit. A general rule: Don’t borrow more than you can repay.

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