Patty Reuter
Retail Manager 
patty.reuter@border.bank
763-780-6600

Today’s economy run’s on credit. Whether you need a student loan, a mortgage or want to buy lunch with a credit card, you are going to need a lender to extend you credit. A good credit score helps lenders to make that decision on extending credit.

Credit scores play a role in determining whether you get loans and they can also affect the rates you may qualify for. But credit scores determine a lot more than just that. Landlords, insurers, phone companies and utilities frequently use credit information as a test to see if the people they are dealing with are reliable and responsible. You could end up putting down larger deposits to get the things you want or need. Or be declined all together.

Your credit score truly matters. Since credit scores have become such an integral part of our financial lives, it pays to keep track of your credit score and understand how your actions affect your score. You can build, defend and take advantage of great credit regardless of your age or income. Do this by creating good credit habits. Good credit habits include:

• Paying your bills on time. Nothing counts more.
• Light but regular use of your credit accounts is very important. Know your credit limit on each credit card and charge no more than 30% of that limit.
• Pay balances in full, if possible. If you do carry balances, try to pay them down as quickly as possible.
• Don't frequently apply for credit products as your score can be affected by the number of times your credit report is pulled.
• Avoid closing revolving accounts if you are trying to improve your credit. Once your scores are high – over 760 or so – you can close an account or two without any major damage but try and keep your highest-limit credit cards open.

You have a lot to lose once you have a score 700 or above. Identity theft can devastate a credit score and is another good reason to monitor your score. You are entitled to a free report from all three credit bureaus once a year. Visit the Annual Credit Report website to obtain your free credit reports. Please note: this is the only website where you are guaranteed a free credit report. Other websites may have costs, may actually affect your credit score by pulling your report, and may sell your contact information to third parties that will use the information to try and sell you on a credit product.

The real benefit of great credit scores are all the options it opens to helping you get ahead and plan your future, instead of just getting by.

For more information about credit scores, please contact one of our Relationship Bankers.

Also check out information on how to get your free credit report here.