Don’t Breakdown Over a Credit Score!

Did you know that there are 5 parts to your credit score? Each part has a different impact on your total. The first and most important part of your credit score is Payment History. At a whopping 35%, Payment History is exactly as it sounds. The stability of your Payment History will, in turn, improve your score.

The second at 30%, is Credit Utilization. What the heck does that mean?!? Well, this is a relationship between your current credit total and the amount in use, or limit vs balance. You should always try to stay under 30% of your total credit limit. Otherwise, your score will drop.

The next at 15%, is the length of your Credit History. This one not only includes the full length of your accounts but also the length of time since last used. The final two come in at 10% each. They are New Credit and a Credit Mix. New Credit is great for your score, but should be used in moderation. Having multiple small accounts is beneficial to you and your score. The Credit Mix is anything from loans to the repayment of debts but does not include rent, utilities, phone bills, etc.

Before you go, there are a couple more facts that can help with your credit score. It is recommended to check your credit score every 4 months. This will give you an accurate number, while not having an impact on your score. To check your score, you can come in and sit down with one of our member service representatives. Members can also check your score FOR FREE through our internet banking mobile app (found under My FICO Score, featured in the menu). Paying in full and on time can improve your score greatly. Along with that, maintaining older accounts shows lenders and credit companies that you are a responsible lender. Small steps towards good credit do pay off, with time. Come in and let’s get started on a sustainable credit path!