How is My Credit Score Calculated?

Credit scores play such an important role in your life; they’re used to obtain homes, cars, credit cards, and more. But how is this three digit number calculated? Let’s explore how credit scores are calculated and how you can improve your credit score so you can get your finances on the right track.

Factors That Impact Your Credit Score

• Payment history: Payment history is one of the biggest factors that influences your credit score. Lenders want to be sure they’re going to get their money back before lending it to you, so make sure you have a good history of making payments on time.
• Length of credit history: Creditors will also look at how long you’ve had your credit accounts to see how well you are at managing your financial responsibilities.
• Types of credit you have: Having a mix of loans, credit cards, and other credit accounts is ideal. It shows lenders your experience with a different debt.

Who Looks at My Credit Score?

Any landlord, creditor, utility company, and lender may pull your credit report to see how reliable you are when it comes to repaying your debts. So before you apply for a credit card or loan, you’ll want to make sure you have good credit so that you receive a low interest rate. However, you don’t always need to have a high credit score to get the best deals. At People’s Community Federal Credit Union, all of our members get the same low rate no matter their credit score. With us, you’re a person not a number.

How Can I Improve My Credit Score?

If you have no credit or bad credit, there are some things you can take to improve your credit score.

• Make all of your payments on time
• Pay more than the minimum amount, if possible
• Try not to spend more than 30% of your credit limit
• Ask for higher credit limits
• Keep your credit cards open

If you’re looking to improve your credit score and are interested in taking out a loan or applying
for a new credit card, People’s Community Federal Credit Union in Clark County WA is here to
help. We offer auto loans, home loans, personal loans, credit cards, and more.

We don’t focus on your credit score, rather we look at several other factors when reviewing your loan request.
We will soon be offering a secured credit card, which will allow you to obtain a credit card regardless of your credit score.

At People’s, you’re a person not a number – all of our members get the same low rate regardless of their credit score.