Your credit score is an extremely important part of your financial life.
It is a three-digit number calculated to indicate your credit worthiness. The higher the score, the more credit worthy you are to a lender. It is based on several factors which includes your payment history, credit utilization, your mix of credit, and recent credit activity.
A credit score is calculated from information in your credit report and takes into account whether you have been making on-time payments, your revolving debt use, length of your payment history, and other such factors. It is important to know that your score does not take your age, income, employment, marital status, or your bank account balances into account.
Luckily, it’s not difficult to establish a healthy credit score once you understand how it works.
What does a good credit score mean to me?
A good score may mean you have easier access to more credit, and at lower interest rates.
The importance of improving your Credit Score?
- Good indicator of financial responsibility
- More likely to get approved for a loan
- Saves you interest over time
- Affects insurance rates
- Landlords and sometimes employers review credit scores
How to improve your Credit Score?
- Pay bills promptly
- Pay down credit card debt
- Use different kinds of credit
- Hang onto old cards
- Apply for new credit carefully
Do only banks and lenders use credit scores?
Any institution that lends money – credit unions, banks, credit card companies, financing companies, and mortgage lenders, just to name a few – can use a credit score to help them assess whether you meet their lending criteria.
These institutions are likely to use your credit score along with other information unrelated to your credit score that they have obtained directly from you, such as whether you’re working, your work history, your income, and your planned down payment. In general, borrowers with higher scores can get more credit, and at more competitive rates.
Lenders aren’t the only ones who may use your credit score. Insurance carriers can use credit scores to help predict losses, and to accurately price homeowners and automobile insurance policies.
We believe your credit score is the “superpower” that can pave the way for good financial health and help you achieve your dreams. That’s why we offer our members a product called SavvyMoney that will help you make informed decisions to maintain a healthy credit score.
When you’re logged in to our online or mobile banking app, you can use SavvyMoney to check and refresh your credit score and credit report every day without any negative impact on your score.
Features of SavvyMoney:
- Personalized Credit Report: A detailed credit report tailored specifically to your financial history and situation.
- Real–Time Credit Monitoring Alerts: Stay informed with instant alerts about any changes or activities affecting your credit report, allowing you to take prompt action when needed.
- Credit Goals and Action Plan: Set your credit goals and receive a personalized action plan to guide you towards achieving them, ensuring a strong and stable score.
- Credit Score Simulator: Experiment with different scenarios using our Credit Score Simulator, so you can better understand how specific financial decisions can impact your credit score.
- Credit Score Education: Knowledge is power, and the tool provides educational resources to help you deepen your understanding of your credit score and improve your financial literacy.
