Financial Planning

Know Your Credit Score

Understand what goes into determining your credit score and how to keep your score healthy. Your credit score will affect interest rates and determine financing options.

How to Know Your Credit Score from Protective Life

What is a credit score?

Most Americans understand that having a high credit score is important. And while you may not think of your credit score as part of your family budget, it is. For example, a healthy credit score can greatly affect what interest rates you’ll pay on major purchases such as a vehicle or home loan, as well as increasing your eligibility for lines of credit when you need it. The fact is, the higher your credit score, the lower your interest rates will be, and why it’s important to know how your credit score can affect your budget.

Understanding your credit score and what creates it is a critical component to maintaining a healthy credit score and credit history. This video looks at how your credit score is calculated based on five primary factors that include your payment history, your debts, the length of your credit history, new credit, and the types of credit that you use. The importance of any one factor in this calculation depends on the overall information in your credit report – such as number of late pays, collections, a bankruptcy, a heavy debt to income ratio, and if you’re just beginning to establish your credit. And as the information in your credit report changes, so will the importance of any one of these factors in determining what your credit score is.

At Protective Life, we understand the importance of maintaining good credit. Following some of the guidelines in this video can go a long way in helping you build and maintain a healthy credit score – today and in the future!

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The information presented in our learning center is designed to provide a high-level introduction to a topic and is for educational purposes only. We always recommend you speak to a qualified financial advisor or insurance representative about your individual situation.