Last week, we shared some interesting information about\u00a0Millennials and credit scores. In a nutshell, the sad news is that many millennials do not understand how credit affects them. With the\u00a0news\u00a0that an increasing number of people from this generation are purchasing houses, it is even more vital to provide education on this topic. Here are the top seven things that everyone, including millennials, need to know about credit. \tA credit score is a tool that predicts the future performance of a borrower, specifically that borrower\u2019s ability to repay the loan. \tCredit scores are also called FICO scores, and range from 400 to 850. \tA low credit score (below 619) indicates that there is a large risk to the lender. At worst, it can result in denial of the loan. At best, it can raise the interest charged, costing the borrower money. \tAn excellent credit score (above 720) tells the lender that the borrower is likely to pay the loan on time. This results in lower interest rates and more borrowing power. \tYou can check your credit score. Less than 80% of Millennials have checked their credit score. It is wise to\u00a0request a credit report\u00a0often, and it is free to do so up to three times a year. \tCredit report errors can be fixed, which can then raise the score higher. Always check for and\u00a0dispute\u00a0errors in order to have the most accurate score. \tMost importantly, there are always ways to improve credit and it\u2019s important to know how to do so properly. For example, 43.69% of those cited in our\u00a0last blog\u00a0believed that they could improve their score by increasing credit utilization. In fact, the opposite is true. Remember these important facts about improving your score: \t Pay bills on time, every time. Set reminders or automatic payments if necessary. \t Keep balances low on credit cards. Use only a small portion of your available lines of credit. \t Pay off consumer debt as quickly as possible. \t Don\u2019t open multiple new accounts at once. \t Don\u2019t close or lower the limits on all credit cards, as this affects the credit available, and can lower your score. Whether you\u2019re a Millennial or a Baby Boomer, your credit score can impact your financial future. Understanding the importance of credit score and how to raise it is the first step. For additional guidance or to begin the mortgage process, our\u00a0loan experts\u00a0would be happy to discuss your short- and long-term goals. Contact us today.