![\"Leslie](\"http:\/\/www.financenewmexico.org\/articles\/wp-content\/uploads\/2009\/11\/Leslie-Hoffman-ACCION-NM.jpg\" "\\"Leslie-Hoffman")
<\/a>Leslie Hoffman, Vice President of Lending and Client Service, ACCION New Mexico<\/p><\/div>\n
Those who spend their careers watching the economy contract and expand agree on at least one thing: a person\u2019s credit score is important in any economic cycle.\u00a0 Before extending credit to an individual or business, bankers want to review the borrower\u2019s credit report and know their credit score.<\/p>\n
Financial institutions verify credit through reports that reflects how an individual has handled his debts.\u00a0 Three national companies \u2013 Equifax, Experian and Transunion \u2013 track credit and produce reports.\u00a0 All include similar information.<\/p>\n
Report elements include personal information such as Social Security number and employment record, borrowing history, a record of creditors who have reviewed the credit history, and other public information such as foreclosures or bankruptcies.<\/p>\n
Credit scores generally range from 350 to 850 points, with most people scoring in the 600 to 700 range. A high score indicates good credit. Lenders review credit scores to determine loan amounts and interest rates that will be charged, and a higher score usually yields more favorable loan terms.<\/p>\n
Individuals can increase their credit score by making payments on time, paying off credit card balances and avoiding purchases that go over the account maximum.\u00a0 Limiting the number of new credit account applications and avoiding the transfer of balances to another card will also help.<\/p>\n
Those who do not have a credit history and want to build one can apply for a small, manageable loan at their local bank or credit union.\u00a0 Owners of small businesses can apply at an organization such as ACCION New Mexico, which works to help people establish business credit.\u00a0 Creating a good credit record may take a few years since the ability to make payments must be demonstrated over time.<\/p>\n
Everyone has the right to get a free copy of their credit report once a year from each of the national consumer credit reporting companies. Requests can be made at www.annualcreditreport.com<\/strong><\/span><\/a> or directly through each of the credit reporting companies: www.equifax.com<\/strong><\/span><\/a>, www.experian.com<\/strong><\/span><\/a>, and www.transunion.com<\/strong><\/span><\/a>.<\/p>\n If credit history errors are found, they can be disputed.<\/p>\n If debt has become overwhelming, there are people who can help.\u00a0 Consumer Credit Counseling Services, a non-profit agency, provides confidential low-cost counseling, educational programs, debt management assistance and counseling in New Mexico. \u00a0Services can be obtained at www.cccsintl.org<\/strong><\/span><\/a> or over the phone at 1-800-873-2227.<\/p>\n Learn more about ACCION New Mexico<\/strong><\/span><\/a>.<\/p>\n Article 113<\/p>\n Download 113_Increase Your Credit Score PDF<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Discover various ways to improve your credit score. Continue reading