To many of us, those “free credit score report.com” commercials are catchy and downright cute. In addition to the memorable jingle, each ad promotes a lesson as to why checking your credit score is important. From only having enough credit to purchase a “sub compact” car to needing to work at a local renaissance fair or seafood restaurant, viewers get the idea that not checking your credit score can result in hardship.

Why is our credit score important and what exactly does it mean? Generally, your credit score tells lenders what you’ve been doing financially for an extended period of time. A few components include recent credit activity, if you are delinquent on loans and own or have owned property. The credit bureau assigns you a score that tells the lender your likelihood of paying back a loan. An excellent credit score hover around 800 whereas a terrible score rock bottoms anywhere below 600.

Many Americans fall somewhere in between those scores and there are steps you can take to remedy a failing score. However, do you know which components make up your score?

Stay tuned to our next blog where we’ll discuss those components. Or call one of our AmeriFirst loan professionals to review what you need for a good or excellent credit score at 800-466-5626 or visit our contact us page to send us your information online.