Knowing your credit score and understanding its
significance are important because the number can
directly affect the interest rates you pay for
mortgages, car loans, and credit cards.

The first step to maintaining solid credit is staying
informed. You can keep track of your credit history
by requesting a free copy of your credit report at
www.annualcreditreport.com. All consumers are entitled
to one free credit report a year from each of the
national credit–reporting agencies — Equifax, Experian, and TransUnion.

The exact formula used in calculating your credit
score remains a mystery, but there are several
important factors to be aware of. Payment history is
probably the most important factor. A single late
payment can have a negative effect on your credit.
Consider setting up automatic payments that can be
withdrawn directly from your bank account.
The amount of credit you use is also a consideration. High balances on credit cards carried over month after month can lower your credit score. You should generally keep a debt load that is well below your credit limit.

Your credit score may be one of the most important numbers of your financial life. Stay informed and use your knowledge to help improve your financial situation.

For Region: Chicago

• Greg Farrall
• SVP Lakeside Wealth Management Group, LLC

Greg P. Farrall is a fully licensed financial advisor with Lakeside Financial Group, LLC. Greg has
extensive experience in the equity derivatives markets after having served as partner with multi-million dollar investment firm, Rubicon Investments at the Chicago Board of Options Exchange. Prior to joining Lakeside, Greg spent thirteen years as a floor trader which helped him gain expertise in overall market investing. He has traded through such market events as the devaluation of the peso, healthcare bear market, the dot-com boom and the dot-com bust. He holds Series 7, 63, and 65 Licenses, as well as Life and Health Insurance Licenses.