Credit Score

Your credit score isn’t just a financial number—it’s a reflection of your creditworthiness. It affects everything from loan approvals to apartment rentals and even some job applications. Whether you're just getting started or aiming for excellent credit, understanding how credit works is essential.

Below, we break down everything you need to know to take control of your financial reputation.

A credit score is a three-digit number that ranges from 300 to 850 and represents your credit risk. The higher the number, the more likely you are to be approved for loans, credit cards, or financing—and at better interest rates.

The main credit scoring models include:

• FICO Score (used by most lenders)
   
• VantageScore
   

Both are calculated based on data from your credit reports, which are provided by the three major bureaus: Equifax, Experian, and TransUnion.

Credit history refers to your track record of borrowing and repaying money over time. It includes:

• The types of credit you use (credit cards, loans, etc.)
   
• The length of time you've had credit accounts
   
• Your payment history
   
• Any negative marks (late payments, collections, bankruptcies)
   

Lenders look at your credit history to determine how responsible you are with managing debt. A long, clean history with on-time payments can significantly boost your score.

Here’s what makes up your FICO credit score:

1. Payment History (35%) – Do you pay your bills on time?
    
2. Credit Utilization (30%) – How much of your credit limit are you using?
    
3. Length of Credit History (15%) – How long have your accounts been open?
    
4. New Credit (10%) – Have you recently applied for new credit?
    
5. Credit Mix (10%) – Do you use different types of credit (credit cards, loans, etc.)?
    

Knowing what influences your score can help you make smarter decisions.

Raising your credit score takes time and discipline, but the rewards are worth it. Here’s how you can elevate your score:

• Pay bills on time – Even one missed payment can lower your score.
   
• Keep balances low – Aim to use less than 30% of your available credit.
   
• Avoid too many inquiries – Only apply for credit when necessary.
   
• Keep old accounts open – They boost the length of your credit history.
   
• Dispute errors – Check your credit reports regularly for mistakes.
   

If you need help, Premium Advance Credit offers professional support to guide you through each step of the process.

Credit monitoring is a service that tracks changes in your credit report and alerts you about:

• New credit inquiries
   
• Changes to your score
   
• Account openings or closures
   
• Suspicious activity
   

Monitoring your credit helps protect against identity theft and allows you to catch problems early. Many apps and banks offer basic credit monitoring for free, while advanced services provide deeper insights and fraud resolution support.

Your credit score doesn’t define you—but it does influence your financial future. Understanding how credit works and taking proactive steps to improve your score can open doors to better opportunities.

At Premium Advance Credit, we’re here to help you repair, build, and maintain strong credit so you can live life with confidence. Whether you’re starting from scratch or recovering from setbacks, we have the tools and expertise to guide your journey.