Your Credit Score Says It All…
Let’s face it; we have all been reduced to two (2) rather foreboding numbers in life; our social security number and a credit score. One, our social security number; we have little to say with its construction, but you might be surprised at how much you can control your very own credit score.
There are key factors that play a significant role in the development of your personal credit score. According to FICO, the model used by all three major credit bureaus in America, (the magic number that defines how much you will have to pay for using credit) is as follows:
- Your Payment History 35%
- Amount you Owe (Compared to your credit limits) 30%
- Length of Credit History 15%
- New Credit 10%
- Type of Credit in Use 10%
Notice that 65% is your “payment history” and the “amounts you owe”. Time in file is a bit hard to control but when has time ever been on anyone’s side?
The amounts and types of credit also are key players. This simply means you need an even mixture of both “revolving credit lines available” (credit cards) and “installments” (auto, mortgages and personal loans with regular monthly payments). One easy way to help insure you set a good foundation for your child/ren is to make sure you place them on the loan you take out for their first auto. This will help them to build their own credit score, even if you are helping to pay for their first car loan. By adding their name to the loan, it will develop their very first installment trade line on their credit bureau and soon they will be able to afford and better yet, qualify for their own car loan after they graduate.
If you already have amazing credit, call us for details regarding our advertised 1.99% annual percentage rate for up to 72 months on autos and motorcycles! Green Country Federal Credit Union is dedicated to helping you develop, correct and re-establish your credit by giving you amazing rates. It’s what we do for our community!