Why having a good credit score is so important now.

By SavvyMoney on 6/5/2024

Mortgage lenders look at your creditworthiness when you apply for a home loanThis article discusses why credit scores are important and provides tips to improve your score.

A good credit score is always important, but lately, as lenders tighten things up, a high score is becoming even more vital than usualWhen lenders increase their standards for doing out loans and credit cards, suddenly it can be extremely difficult to get approved. 

Two recent reports show that lenders are making things hard on consumersIn one study, a high percentage of banks and lenders reported that they had tightened standards for credit cards and loansIn another report by the Federal Reserve, the rejection rate for loans – such as mortgages, car loans, and more – jumped by 22 percent in JuneThat’s the highest rate in five yearsThese trends highlight just how important a high credit score is right now. 


When it comes to keeping your score as high as possible, it helps to know what, exactly, is a high scoreFor VantageScore, 750 to 800 is excellent, while 700 to 749 is goodFor FICO, 800 or higher is excellent, 740 to 799 is very good and 670 to 739 is goodNow that you know what scores you’ll need, a few tips to improve your score: 

  • Pay your bills on time, every time. 
  • Regularly check your credit report for errors.
  • Pay down debts.
  • Only apply for new credit cards when needed.
  • Keep credit cards open even if you don't use them (unless they carry a hefty yearly charge).


Want to see what credit changes could impact your scoreUse Credit Sense in the BOS Mobile Banking App or Online Banking platform to access the Credit Score SimulatorFill in the information for credit incidents (like a new card, new loan, or a large payoff) and the simulator will show you your possible new scoreThis can be helpful when making credit decisions. 




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