Keep Watch on Your Credit Score

Your credit score is important. Most businesses at some point borrow money. A ‘very good’ or ‘excellent’ credit score can save you money with lower loan rates.

Your credit score is a numerical rating that lenders use an indicator to determine if you or your business are a good credit risk. Your credit score is a reflection of many data sources: payment history, current unpaid debt, how long you have had credit, the number of credit inquiries and the types of credit you have had in the past to name a few. Credit bureaus may even ‘data mine’ your buying habits. They watch indicators of economic hardship. We’ve heard buying and charging re-tread tires will nick your score a few points.

All credit scores fall between 300 and 850. The higher the credit score the better. Most people score in the 600 and 700’s. Credit scores above 700 are normally considered very good. If your credit score is weak, start working to clean it up. Take care of any judgements, collections or past due items you may have.

Some interesting facts:

SCORE                   % of Population                                         Grade

300-499                              1                                                       500 – 559  Very Bad

500-549                              5                                                       560 – 619  Bad

550-599                              7                                                       620 – 674  Fair

600-649                            11                                                       675 – 699 Good

650-699                            16                                                       700 – 719 Very Good

700-749                            20                                                       720-850 Excellent

750-799                            29

800 and higher               11


Under Federal law, you have the right to obtain a free copy of your credit report from each of the nationwide consumer reporting agencies once a year. But that’s just the report not the number.  So a word to the wise: Check your credit once a year then spend the extra six or eight bucks to get the number.

If it’s low get to work to raise it. To order your free annual credit report:

By Telephone: Call toll free: 1-877-322-8228

On the web: Visit

By Mail: Mail your completed Annual Credit Report Request Form (which you can obtain from the Federal Trade Commission’s web site at: ) to:

Annual Credit Report Request Service

PO Box 105281

Atlanta, GA 30348-5281



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