If you’re thinking of getting a loan to buy or repair a car or home, start a business, or consolidate existing debt, Popular Community Bank wants to share ways to improve your credit score.

What is a credit score?

Your credit score is a 3-digit number that suggests to lenders how likely you are to pay debts on time. It is among the most important numbers associated with your finances.

Your credit score affects:

• Approvals for credit cards, mortgages, apartment rentals, and cell phone plans
• The amount of interest you will pay
• Terms of loans
• The amount of your security deposit and fees
• The amount of your home and auto insurance

A good credit score can save you money

People with good credit scores often qualify for better interest rates than people with lower credit scores. For example, a credit score of 650 could mean paying tens of thousands of dollars more in interest on a long-term loan such as a mortgage compared with a credit score of 750.

Tips for keeping a high credit score include:

Paying bills on time

Keeping credit card balances and other revolving debt low

Opening new credit accounts only as needed

Paying off instead of shifting debt

Disputing errors on bills and credit sources to ensure mistakes are eliminated or noted

Negotiating terms of credit when your circumstances change for job loss, divorce, illness, or other difficulties

Some creditors may remove or revise the negative reporting (i.e., charge off, collections) if you make a payment agreement and pay the balance as agreed upon, or payoff the remaining balance. Note that each creditor has different conditions and/or payment agreements in which the consumer pays the agreed upon amount, then the creditor may remove the account instead of reporting it for a continued period of time, or the creditor may report as “paid as agreed”. Also, not all creditors are willing to put agreements in writing so make sure you are aware of your creditor’s conditions.

Ensuring your credit limits are current and asking creditors to raise limits when terms allow

Verify if the credit limit increase requires a new credit report inquiry.

Keeping your credit card at no more than 30 percent of your total credit limit

Checking your credit report frequently

You can visit AnnualCreditReport.com and get a free annual copy of your credit report.

At Popular Community Bank, your credit score matters to us. That’s why we offer FREE services, resources, and tools to help improve your credit score. Learn more.