What is a credit score?

A credit score is a number that represents your calculated measure of credit risk. Your credit score is the result of a complex mathematical formula that takes into account numerous factors in your credit history. Your credit score is very important because it can determine your financial future. More specifically, your credit rating can affect whether or not you can obtain a loan,  the interest rate and down payment you will be required to have.

Average Credit Scores – How do you stack up?

Credit scores range between 300-850. The national average credit score is around 680, in Wisconsin it’s 699, which is very good.  Credit experts feel that having debt isn't necessarily bad - it's all in how your credit is managed, as to how your credit score will be affected. 

You can obtain a free copy of your credit report by visiting http://www.annualcreditreport.com/.

Things that affect your credit score positively:

· Paying your bills on time and in full

· Using 25 percent or less of your available credit limits

· Having a variety of accounts (installment, mortgage, revolving) 

· Steady employment. People who are steadily employed are viewed as being better able to pay their bills on time

Things that affect your credit score negatively:

                   · Late or missed payments (probably the main negative factor)

                   · Using more than 80 percent of your total amount of available credit

                   · Liens, judgments, foreclosures, bankruptcy