Ask Mike! »  Credit Scores

Q: What is a credit score and how does it work?

A: A credit score is an indication of credit history and measures the ability to repay debt in the future. The most important factor for a good credit score is paying your bills on time.

The actual score is a combination of previous credit performance, amount of current debt, how long accounts have been open, types of credit used and inquires for new credit. Your credit score is not based on age, income, race, gender or marital status.

Low credit scores can be increased by paying your bills on time, managing credit card debt and limiting credit inquires.