Credit Scores 101

July 16, 2024

What is a credit score?

A credit score is a three-digit number that lenders use to objectively measure your creditworthiness. Your credit score is a snapshot of your finances at a particular moment in time. As information in your credit file changes, so will your credit score.

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Who calculates my credit score?

Some lenders create their own credit scoring models. Others hire developers, such as Fair Isaac, to customize a scoring model for them (FICO score). The three main credit bureaus (Experian, Equifax, and Trans Union) that compile your credit score all use a FICO scoring model and they weigh credit factors differently. Your FICO score can vary by 30 points to 100 points between the three bureaus.

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What factors are taken into consideration for my credit score?

Payment history
Total debt
Length of credit history
New credit
Credit mixYour credit score takes your entire credit history into account, including if you’re chronically late in paying your bills. Also, check your credit report once a year to verify the information is correct because inaccurate information could negatively influence your score.

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Where can I find my credit score?

Here are some useful resources that may help:

Equifax and Fair Isaac have teamed up to provide a detailed score along with your credit report, for a fee, at www.myfico.com.
HSH Associates: A General Guide to Credit Grades –www.hshassociates.com/bcd-specs.html.
Experian – www.creditexpert.com.
Trans Union – www.transunion.com.
Source: “Keeping Score: Facts About Credit Scores” – Credit Union Consumer Facts; www.cuna.org.

Important Note: If you have a SecureChecking account at The United Methodist Credit Union, you can get credit profile monitoring throughout the year, as well as the ability to check your credit score/profile every six months. You can also see what factors, if any, are causing the score to be adversely affected.

Credit Scores 101

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