Credit scores are important. They affect the rate of interest on a mortgage, credit card, or auto loan. They also play a role in whether you get auto or homeowners insurance.

The Consumer Financial Protection Bureau has created excellent advice how you can get and keep a good credit score. To learn more, visit their website at

More information about your credit report
It shows information about how you have used credit, such as

  • how much credit you have,
  • how much of your available credit you are using,
  • whether you have made your payments on time, and
  • whether anyone has sent a loan you owe to a debt collector.

How is your credit score derived?
A credit score is a number that is used to predict how likely you are to pay back a loan. Your credit score starts with the information about you from your credit report. A mathematical prediction formula is applied to this information about you from your credit report. That prediction formula, which is called a scoring model, creates a number which is your credit score.

You probably have numerous credit scores. Credit scores are used by companies to make decisions such as whether to approve a mortgage at a certain rate or issue a credit card. Different lenders use different scoring formulas so your score can vary from lender to lender. Usually a higher score makes it easier to qualify for a loan and means a better rate of interest. Most scores range from 300-850, although there is one scoring method that uses a range from 501-990.

How to get (and keep) a good credit score:

  • Pay all your loans on time.
  • Make sure information in your credit report is correct.
  • Don’t use too much of the credit that is available to you.

If you have questions about how Peoples Bank uses credit scores, please contact our Customer Service Center at 828.466.1765 or toll free 877.802.1212.