Your credit score has an enormous impact on your ability to get approved
for loans and credit and the interest rates you’ll pay. Despite
the fact that credit scores are so important, many consumers are confused
about what they mean and how they are calculated. When you are a
credit union member, you always have access to financial advice to help you understand your
credit score and what you can do to improve it. Here is a look at the
basic information you need to know about your credit score.
What is a credit score?
Your credit score is a three digit number that is calculated based on your
past financial behavior. Lenders use it to determine the likelihood that
you will repay loans or manage credit cards responsibly. If your credit
score is low, you may struggle to get approved for things like auto loans
or mortgages. The higher your score is, the more likely you are to get
good interest rates on loans and other financial products. Scores range
from 500 to 850.
How are scores calculated?
Credit scores are calculated based on a number of pieces of information
about your past financial management that is contained in your credit
report. The most important factor in your credit score is the number of
late payments you have on your report, followed by how much debt you currently
have. Other factors that are considered when calculating your credit score
include the mix of credit types you have, the length of your credit history,
and how many new accounts or requests for credit checks you have made.
How can I keep a good score?
The best way to keep a good credit score is to pay your bills on time.
You should also aim to keep your credit card balances to less than 30%
of your total available credit. Avoid applying for new credit that you
At GCS Credit Union, we’re committed to the financial health of the
members of our credit union in O’Fallon. If you need help managing
your credit, make an appointment to talk to one of our team and find out
about our credit and loan services, including our
Visa Reward credit card. Contact our credit union today by calling (618) 797-7993.