From Meredith Huber, Mortgage Lender (NMLS# 1965302), Iowa State Bank, Algona

When it comes to personal finances, a strong credit score can open up doors to favorable rates and terms for loans and credit cards.

Learn how these five factors can impact your credit score:

  • Payment history —Pay bills on time.
  • Credit utilization —Avoid maxing out your credit cards.
  • Length of credit history — Credit accounts, like a credit card, handled positively over time impact your credit score favorably.
  • Number of accounts or inquiries — Too many credit inquiries can cause your score to drop.
  • Credit mix —A variety of credit accounts handled properly (mortgage, auto loan, student loan, credit cards) shows your ability to handle credit.

A credit score of 750 or higher is considered excellent; 700 is still considered good. Typically, you don’t want your rating to fall below 700. Building and maintaining an excellent credit score requires organization and the willpower to live within your means.