Let’s break it down...

What's a Credit Score?

A credit score is a little three-digit number that says a lot about how you handle borrowed money. It's based on your credit history and helps lenders decide how risky (or reliable) you are when it comes to paying things off.  

Here's what factors into your score: 

• Payment history
  Do you pay your bills on time?
  
  
• Credit utilization
  How much of your available credit are you using?
  
  
• Length of credit history
  How long have you had open credit accounts?
  
  
• Types of credit
  Do you have a mix of credit cards, loans, etc.? 
  
  
• Recent credit inquiries
  Have you applied for any new credit recently?
  
  

Why does it Matter?

Your credit score can affect more than you might think:

• Loan approvals
  A higher score makes it easier to qualify for loans or credit cards.
  
  
• Interest rates
  Better scores often mean lower interest rates, which can save you big money.
  
  
• Rental Applications
  Landlords may check your score before offering you a lease.
  
  
• Job Opportunities
  Some employers (especially in Finance) check credit reports during hiring.
  
  
• Insurance Premiums
  In some states, including Indiana, your score can affect your car or home insurance rates.
  
  

What is Considered a "Good" Score?

While different financial institutions have their own standards, here's a general guide:

• 800 or higher: Excellent

  The GOAT.  Greatest of All Time.  You're crushing it.
  
  
• 740–799: Very Good
  Main Character Energy.  Not perfect, just vibing.
  
  
• 670–739: Good
  You're in your Credit Era.  Keep it up.
  
  
• 580–669: Fair
  Very mid.  It's giving "Humble Beginnings."
  
  
• Less than 580: Poor
  First of all, rude.  Secondly, time for you comeback story. 
  
  

Final Thoughts

Your credit score is more than just a number. It's a snapshot of your financial history. And like any good story, it can grow, change, and improve over time.

If you're ready to learn more, check out our collection of credit-building resources at FirstBankRichmond.banzai.org. You'll find articles, tips, and interactive tools to help you understand your credit and become a low-key unstoppable financial hero. 

Your financial plot development? We're absolutely here for it.