Money Smart Main Topics

What is a Credit Score

Good credit saves money; bad credit costs money. It can be difficult to pay cash for your car, home and college education and that’s where credit can be helpful. It’s important to have a plan to build and maintain a good credit history. Good credit saves money; bad credit costs money.

Your credit impacts the way you live. For instance, it can help you get a car with a low interest rate loan and even help you get a lower rate on your car insurance. But if your credit isn’t good or you don’t have a credit score, your credit can work against you and cost you money.

What Your FICO® Score Means To Lenders

579 or less

Lenders view you
as a very risky
borrower

580 or 669

Some lenders will
approve loans
with this score

670 or 739

Most lenders
consider this a
good score

740 or 799

Lenders view you
as a very
dependable
borrower

800 +

Lenders view you
as an exceptional
borrower

How Credit Scores are Calculated

35% – your payment history         credit score pie chart
Tip: Pay bills on time

30% – the amounts owed
Tip: Only utilize 25% of your credit limit

15% – length of credit history
Tip: Keep old cards, but use infrequently

10% – new credit
Tip: Don’t apply for multiple credit cards

10% – types of credit
Tip: Have a diverse credit history

How to Review Your Report

Make sure that you recognize the accounts, loans, addresses and other information on your credit report. Then check that the information on your credit report is correct. If you find information that you believe is not correct, contact the company that issued the account or the credit reporting company that issued the report. For more information visit the Consumer Finance website for common credit report errors. Consumer Finance also has information about how to spot identity theft.

Where and When to Get Your Credit Reports