Understanding your credit score.
Your credit score is more than just a number—it’s a key that can unlock or close doors to financial opportunities. Whether you're applying for a mortgage, a car loan, or even a new credit card, your credit score plays a crucial role in determining your financial future.
It's a three-digit number calculated to indicate your creditworthiness.
But what exactly goes into calculating this score, and why does it matter so much?
Short answer: Companies use a mathematical formula – called a scoring model – to create your credit score from the information in your credit report.
Factors include:
- Bill paying history
- Current debt
- Number and type of loan accounts you have
- How long you have had your loan accounts open
- How much of your available credit you're using
- New applications for credit
- Whether you have had debt sent to collection, a foreclosure, or a bankruptcy, and how long ago
But you don’t have just one credit score. Each credit score depends on the data used to calculate it, and it may differ depending on the scoring model (which itself may depend on the type of loan product the score will be used for), the source of the data used, and even the day it was calculated. Usually a higher score makes it easier to qualify for a land and may result in a better interest rate or loan terms. Most credit scores range from 300-850.
Managing your credit score can seem overwhelming, but with our Credit Sense tool, you can take control of your financial destiny and make informed decisions that set you up for success....for free.
Learn more and how to enroll.
Heartland Bank is a family-owned bank located in 15 communities across the heart of Nebraska. Its vision is to improve the lives of customers, associates, and communities. Heartland Bank has been a five-time recipient of American Bankers' Best Banks to Work For award.
