Contributed by: Edward Jones - Lee Van Pelt

Your credit score can have a big impact on your financial life.

From renting an apartment to getting a cellphone plan, your score can open doors — or close them.

Simply put, your credit score predicts how likely you are to pay bills on time. A higher score often means easier access to credit, lower interest rates and better insurance premiums.

The most common model — the FICO score — ranges from 300 to 850. Above 670 is good; 740 and higher is very good.

When determining this score, payment history matters most, making up 35% of your score. So, paying bills on time matters.

The second most important factor in your credit score is credit utilization, which is 30% of your score. So, keep balances below 30% of your limit.

You can check your credit report for free once a year at annualcreditreport.com.

Building good habits now makes borrowing easier and less expensive later, giving you more flexibility to pursue your goals.

This content was provided by Edward Jones for use by Lee Van Pelt, your Edward Jones financial advisor at (541) 756-0854 edwardjones.com/lee-vanpelt. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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