How lenders view in your credit score.

Your credit score is important to lenders, but there are several things that a lender or bank considers when looking at your score. Here’s the breakdown.

1. Creditworthiness. The biggest thing lenders and banks look at your score for is to determine your creditworthiness. If you have a high score, it indicates to them that you can handle debt and pay down balances responsibly. The higher your score, the less of a risk you are to lenders.
2. Interest rates. How high or low your credit score is determines how high or low your interest rates are. If you have a high score, you will be offered products with lower rates than someone who has a low credit score.
3. Credit limits. Banks and lenders also consider your credit score when setting your credit limits. The higher your score, the more likely you are to be able to handle high credit limits.
4. Loan terms. If you have a high credit score, you are more likely to get favorable repayment conditions and terms on a loan. 

Do One Thing: Make sure your credit score is as high as possible to get the best rates, terms, and limits on the financial products available.

The material provided on this page is for informational use only and is not intended for financial, tax or investment advice. VisionBank, PurposeBank and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.