Prime Credit

Before Amazon Prime stole the word “prime” from the rest of us, there was (and still is) prime credit.

Those with prime credit have really great credit. That means they took out credit (credit cards, student loans, etc.) and paid it back, mostly on time. Not all ways they calculate credit seems to make intuitive sense, but for the most part...it does.

For instance, spending a smaller proportion of your credit limit is better than a larger proportion. If your credit card lets you borrow $2k and you spend $1,900 on it every month, that’s a high proportion. You’ll get a better credit score if you spend less, or if you raise your credit card limit. Paying on time and in-full are two obvious ones, and the longer you’ve been paying on time and in-full, the better your credit score will be.

To be clear: while prime credit borrowers are offered the best (lowest) interest rates and terms by banks, they’re not the cream of the crop. Prime credit borrowers are below super prime borrowers. Super prime borrowers are probably extremely wealthy and/or very meticulous to keep their credit score shinier than Paul Wall’s grill.

One step at a time though: aim to be prime credit before super prime. You can check your credit score at least once a year for free from each of the credit bureaus: Equifax, Experian, and TransUnion. If Equifax rings a bell and you don’t know why, you should probably freeze your credit, to prevent others from stealing your identity and lowering your credit score. You’ll thank us later.