[Infographic] Credit Score 101

The way we handle our finances every day help create our credit scores.

Jul 11, 2013

Most people need a good credit score to get a loan for a new home or a new car. Which of those moves are lowering your score? Which ones are helping it rise? Visit a Zions Bank branch near you today to see how a great credit score can help you save on a car or home loan.

Infographic credit score 101

Credit Score 101

A credit score is a number generated on your credit report used to predict how likely you are to pay your bills. Your credit score can make a big impact on your life. Here are the basics you need to know for a better financial future.

What Affects It?

Your credit score is affected positively when you pay your bills on time and in full, use 25% or less of your available credit, and you maintain steady employment.

Your credit score is affected negatively when you miss making payments or pay them late, use more than 80% of your available credit, have too many credit line requests, experience periods of unemployment, and have gone through a foreclosure or filed bankruptcy.

The Numbers

Excellent: 800+
Very good: 700-799
Good: 680-699
OK: 620-679
Poor: 580-619
Bad: 500-579
Very bad: 499 and lower

How It's Calculated

There are five categories that go into determining your credit score. Here are the percentages based on their importance.

10% New credit
10% Types of credit in use
30% Amounts owed
35% Payment history
15% Length of credit history

Build Better Credit

  • Check your credit report and correct any errors.
  • Ask your lender to lower your interest rate. It can't hurt to ask and it'll help you pay down balances faster.
  • Don't close paid-off accounts. Keeping them open shows smart credit management.
  • Pay off any and all collections.

What Can a Good Score Do?

  • Better home loan rates
  • Lower interest rates on auto loans
  • Credit cards with better APR
  • Less expensive cell phone plans
  • Discounted insurance policies
  • Lower student loan interest

See how a great credit score can help you save on an auto or home loan from Zions Bank. Visit a Zions Bank branch today.


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