Congratulations for taking charge of your credit! It’s recommended that you check your credit score and report regularly so you can track changes and detect any errors.

If your score is lower than you anticipated, take a close look at your reported accounts. Have you missed some payments? Are your credit card balances a bit high? Choose one or two areas to work on and track what it does to your score.

Credit scores are calculated using many key factors including payment history, credit type and length, credit utilization, balances, recent credit, and available credit.

• Payment history – high impact: This is how often you’ve made on-time payments. Late or missed payments may significantly harm your credit score.

• Credit type and length – medium impact: Lenders like to see credit responsibility across a mix of accounts and over a long period of time.

• Credit utilization – medium impact: This is the percentage of your available credit. A good rule of thumb is to keep your credit utilization ratio below 30%.

• Balances – low impact: When you apply for a loan, lenders often review your existing loan balances to determine your ability to make on-time payments.

• Recent credit – low impact: This includes recently opened accounts and hard credit inquiries. A hard inquiry is when a potential lender pulls your credit history. Checking your own credit history through the Axos app won’t impact your score.

• Available credit – low impact: Although not a huge factor, lenders like to see that you’re only taking out the credit that you need.

Your credit score can change every time there’s an update to your credit report. Companies report updates at different times throughout the month. These changes work together to impact your credit score. So, it’s a good habit to check in about once a month.

Generally, a credit score of 700 – 749 is considered good, and 750 or higher is considered excellent.

However, hundreds of credit scoring models are used by U.S. lenders and companies. Each model is nuanced and may use a different score range. When you’re applying for a mortgage or looking to buy a car, you can ask your lender about their credit score criteria.

Lenders typically look at your credit score and credit history as an indicator of whether you’ll pay your loan and if those payments will be on time. The higher the score, the lower risk you pose to a lender.

If you have a low credit score, you might not qualify for a loan, or you may pay a higher interest rate than borrowers with a higher credit score. This is why it’s important to track your credit score and practice good credit habits, like paying your full bill on time each month.

Yes! Credit scores can impact your entire financial life … and beyond. Your credit history can even impact getting car insurance, buying a cell phone, renting an apartment, and employment opportunities. This is because companies use it to predict the risk you may bring.

Your credit information is maintained and reported by three U.S. credit bureaus: Experian, Equifax, and TransUnion. We’ve partnered with Experian for Credit Score Monitoring. If something looks incorrect, you can initiate a dispute with Experian. They’ll review and update your information.