Your credit score is a numerical representation of your creditworthiness. An individual’s credit score is pulled whenever you are looking for an apartment, applying for insurance, in need of a loan and even getting a cell phone. Lenders or service providers may use this score to assess the risk of lending money or extending their services, as this score represents your ability to repay. As we venture into 2024, let’s explore actional strategies to elevate your credit score and set a solid foundation for your financial future.

Understand Where You Stand
You may be getting started or you could already have a score, but understanding where your score is and where you want to be is the first step. If you are on the journey of moving the credit needle, then you need a clear understanding of what is a good score versus a poor score. Here is an example of credit score ranges according to Equifax®:

Based on FICO:

300-579: Very Poor

580-669: Fair

670-739: Good

740-799: Very Good

800-850: Exceptional

Consumers should visit annualcreditreport.com to obtain a free copy of their credit report to figure out their credit score. First Savings Bank offers mobile users an option to access Credit Score powered by SavvyMoney ®. View your credit score, credit report and insight on ways to improve your score today.

Nourishing your Score
Now that you have an understanding on what your credit score is there are several ways to enhance and maintain it. There are several key factors that feed your score such as: Payment History, Amounts Owed, Length of Credit History, Credit Mix and New Credit, each yielding their own percentage of impact. Payment History could comprise for 35% of your score and Amount Owed could comprise 30%, these two factors alone make up more than 50% of your credit score. While all factors feed into your score you should always make sure to make timely payments and keep your credit utilization low.

First Savings Bank Financial Checkup
Credit Score powered by SavvyMoney ® offers users a way to assess their financial health by answering a few questions regarding your spending habits. After you complete the survey it will provide you with a financial health score, credit score, debt-to-income ratio and spending ratio. This information can be used to navigate ways you can improve your financial health or continue on the path you are on.

In Conclusion
No matter where you stand, there are ways you can look to improve your score this year. Elevating your credit score can be an empowering endeavor that can unlock numerous financial opportunities. Implementing these strategies and adopting responsible financial habits can enhance your creditworthiness and pave the way for a brighter financial future in 2024 and beyond.