The 411 on Your Credit Score
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 don’t need.
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.