Aiming for Good Credit. What's your score?
Credit scores. You see the term everywhere. This is a hot topic and we want to help you understand what it's about...and what affects your score.
A credit score is a number assigned to individuals that summarizes credit history and information about credit experiences, such as repayment history, and number, type and age of accounts held. Lenders often use this information—along with other criteria—to determine whether or not credit will be granted.
Does LGFCU use credit scores to deny loans?
No. Every member is afforded consideration in the same capacity. This means that approval is contingent upon the evaluation of credit history, job stability and debt-to-income ratio.
We use the credit score to speed along the approval process, but we don't use credit scores or any other factor to charge higher interest rates for loans. To treat each member fairly, every member pays the same interest rate for the same loan product.
Do I have a right to know my score?
Yes. Congress changed the law requiring the three major bureaus to provide consumers with credit scores for a fee. Visit www.equifax.com, www.experian.com or www.transunion.com for more information.
What if I have a less than desirable rating?
Obtain a free copy of your personal credit report at www.annualcreditreport.com if you haven't already. Look over the report and make sure you recognize all accounts listed. If you find otherwise, request an investigation immediately with the reporting bureau.
Consider closing old accounts.
If your file reflects accounts that have been inactive for a number of years, it is likely that you no longer use them. It is a good idea to ask that the accounts be closed by consumer request and to ask for a copy of that request in writing.
