Do you know what factors affect your credit score? First, your credit score is a number between 300 and 850, which determines how likely you are to pay back the money you might borrow for a loan.
Understanding your score may be a little daunting, but there are tools today that can give you complete visibility into what factors affect your score and tips to help you improve it.
Factors That Affect Your Credit Score:
- 40% is Payment History (Do you pay your bills on time?)
- 23% is Credit Utilization (How much debt do you have?)
- 21% is Account Age (The longer, the better.)
- 11% is Mix of Credit (You want to show you can handle a mix of loan types.)
- 5% is Recent Activity (Applying for credit recently.)
Why is understanding and improving your credit score so important?
- A good indicator of financial responsibility
- More likely to get approved for a loan
- It saves you interest over time
Use these tools to your advantage. Nymeo members can also enroll in SavvyMoney, found in online and mobile banking for FREE. SavvyMoney also provides you with a Credit Score Stimulator so you can see what would occur if you closed or opened a credit card or obtained a new loan.
For more information on credit scores, check out this educational webinar presented by our partners at GreenPath Financial Wellness.
Category: Credit Union Benefits
