Your credit score is a three-digit number that ranks how likely you are to repay your debts. Your score is vital to the decision lenders make about your loan approval. Scores are based on how quickly you repay debts, the amount of debt available compared to how much you’ve used, and if your payments are made on time.

It’s important to keep track of your score. Many credit card companies offer a monthly update free of charge. Check your score often, especially if you are preparing to use more credit. This report will show you what is impacting your score and where you can improve.

What you should know:

• Want to borrow a higher amount? Improve your credit score. The three best ways to do this are to correct any errors on your report, use less of your credit limit, and pay bills on time and in full each month.
• If you have high-interest deb spread out over several credit cards, consider consolidating the balances on a lower-interest card. This will reduce your monthly payment and may help you qualify for a higher loan amount.