3 things about your credit score

3 Things to Know About Your Credit Score


As a not-for-profit, cooperative financial institution, Lighthouse Community Credit Union takes a lot more into account than just numbers when we’re considering your credit application.  Being local, we’re able to give you the personal service you deserve.

Your credit score is still important. A high credit score is your ticket to better borrowing.

FICO® is considered the global standard that influences your credit worthiness. In other words, it helps determine whether you should be approved for a loan or credit card, how much you can afford to borrow, and whether you get the best interest rates. FICO® scores range from 300 to 850. The higher your score, the better your credit options will be.

Here’s what you need to know to keep your credit score in good health.

#1 – Your credit score is determined by five factors:

1. Your history of making payments (35%). A history of making payments on time will positively impact your credit score.

2. How much you owe (30%). Having a manageable amount of credit is good; being maxed out will hurt your credit score.

3. Length of credit history (15%). If you have a track record of paying for your credit, it will help your score.

4. Credit mix (10%). The combination of types of credit you have, such as retail charge cards and mortgage loans.

5. New credit (10%). Opening a flurry of accounts at once can signal greater credit risk. This could result in a lower credit score.

#2 – Know your number. 
Monitor both your credit report, which lists all of your accounts and balances, and your credit score. This will help you report inaccuracies to the credit bureaus, and may help you to detect fraud. You can receive a free copy of your credit report from each of the three reporting agencies (Equifax, Experian, and TransUnion) every 12 months. You should check your credit score monthly. Checking your own credit score is a “soft” inquiry that won’t negatively impact your score.

#3 – Not happy with your score? You can fix it.
Make payments on time. Reduce your balances. Try to pay more than the minimum payment. Apply for new credit less frequently. A lot of sudden new requests for loans and credit cards can signal that you’re having financial trouble. We are happy to help you improve your credit score.  Lighthouse Community Credit Union   360.694.8329   www.lhccu.com