Your credit score can affect everything from securing a loan to how much interest you'll pay when you're approved for a house. While it's just a number that typically ranges from 300 to 850, there's a lot of information behind it. If you have a low number, it equates to a bad credit score, but there are things you can do to change it. Here are 4 things you should understand about your credit score.

1. You need to learn more about your number. Get a free copy of your credit report from each of the three bureaus. Since your credit score is based on information in the credit report, it's important to see it, so you know what you need to work on. Once you have your credit report, look it over carefully for inaccuracies or errors. Mistakes can be disputed by contacting the credit bureau or creditor who listed it on the report.
2. Your credit score is affected by your credit utilization, which is the ratio of your credit card balances to their respective credit limits. Avoid using new credit cards for purchases and pay cash when possible. Lowering your balances helps improve your credit score.
3. Pay your bills on time. Your payment history makes up 35% of your credit score. The further behind you are, the more it will affect your score. Talk to your creditors about late payments and ask about re-aging your account, so it shows you've paid on time.
4. Your credit score is always changing. It changes every time you make a payment or skip a payment. Your score adjusts when your credit card balances change. It changes every time you apply for new credit, and so on. Since it's a moving target, you can change it for the better.

Your credit score is important, so it is a good idea to get a handle on improving it right away. If you purchase a car at Hometown Auto, we can help you build positive credit. We offer quality vehicles with low down payments and affordable monthly payments for buyers with bad credit or no credit history. We will set you up with a financing plan even when other dealers and banks have turned you down. Stop in and see us at our High Point or Winston Salem locations to find out more.