Make your credit score a number you can count on
How do I find my credit score
If you’re a member of LGFCU and currently have a loan or an active credit card with us, you can check your credit score for free within Member Connect! Your credit score is automatically updated within Member Connect each quarter.
Another convenient way to get your credit score may be through additional financial institutions where you have an account, credit card or loan. Check with those providers to see if a free credit score option is available.
Three things you can do right now:
1) Pay down revolving credit and keep your balances low.
2) Don't let your credit balances get too close to their limits. Try to keep your used/open credit ratios to no more than 30% for each account.
3) Only apply for and open new accounts when you really need to.
Remember! A credit score is just a snapshot in time based on information currently available within your credit report. Credit scores can change over time based on your credit behavior.LGFCU uses the FICO scoring system.
What is a credit score and why does it matter?
A credit score is a number that identifies what type of credit risk you are as a borrower.
In other words, it’s an indicator for how financially reliable you are. For lenders, your credit score indicates how good you are at repaying your debts and may be used to determine whether you will be approved for a loan. Sometimes, credit scores are also used to determine the interest rate you receive on certain types of loans.
The number that represents your credit score is calculated by a statistical model that compares your credit information to others with similar credit reports. Millions of credit report files are used in these calculations, which make credit scores excellent predictors of an individual’s likelihood to repay a loan.
Credit scores are helpful in the loan approving process because they view an applicant’s credit history objectively. Credit score calculations don’t take demographic or cultural differences into consideration. The models used to assess an individual’s credit score use the same factors in the same way for every person, every time.
There are different models available to determine a credit score, and not all lenders may use the same credit score model. This means you may receive a different credit score from different providers. It’s good to know which credit score your financial provider uses. At LGFCU, we rely on the FICO® Score 8 model provided by Equifax.
Are you a credit score whiz? Take the quiz!
FAQs about credit scores
The number that represents your credit score is calculated by a statistical model that compares your credit information to others with similar credit reports.
Five key factors are used to determine a credit score:
- Payment history
- Amounts owed
- Length of credit history
- New credit
- Credit mix
Learn more by viewing What’s in a credit score?
For lenders, your credit score indicates how good you are at repaying your debts and may be used to determine whether you will be approved for a loan. Sometimes, credit scores are also used to determine the interest rate you receive on certain types of loans.
Yes. Usually, your credit score is not impacted when you check your own credit reports or credit scores. It’s good to check your credit reports and credit score regularly to make sure your records are accurate and complete.
Yes. The credit score you see can depend on the credit scoring model and credit bureau that the credit scoring company uses to calculate it. There are many different credit scoring companies and models, as well as several credit bureaus, which means you could receive different credit scores from different companies.
Have more credit score questions? Email us!
COVID-19 impacts credit scores
Has your credit score been affected by the pandemic? You’re not alone. It’s for times like these that we offer resources to assist our members. We want to help you protect your home, vehicle and your credit rating.
- Loan assistance is available for eligible members experiencing job loss, reduction in hours or other income loss related to the COVID-19 pandemic.
- With our Recovery Assistance, qualified Recovery Specialists will work with you to restore your good standing with the Credit Union.
- Our Mortgage Assistance Program is designed to help keep you in your home when you’re having trouble paying your mortgage.
- Financial Counseling is also available to help you review your credit report, create a spending plan, participate in debt elimination counseling, and more.
- The Personal Finance section of our website features a Financial Hardship section to help you navigate your financial challenges.
What's in a credit score?
Five key factors are used to determine a credit score. It’s important to know what those factors are and what activities impact each. This way you’ll know what steps you may need to take to improve or maintain your credit score.
That means it will take time to improve a credit score, and consistent monitoring to maintain a good score. The good news is — you can do it!
Payment history on current and past accounts, and any public record or collection items.
With payment history being the most important factor in determining your credit score, it is important to ensure you make all payments on time, every time.
Ratio of overall credit use — balance — compared to credit limit — amount of credit available.
It’s best to keep your balances consistently below a 30% credit utilization ratio. Example: If your balance is $250 and your limit is $1,000, your ratio is 25%.
Amount of time credit accounts have been open and how long it’s been since those accounts have had activity.
Closing old credit card accounts could hurt your score. It’s better to keep these open to show a longer credit history.
The variety of open credit accounts, like credit cards, retail accounts, installment loans and mortgage loans.
Maintain different types of credit accounts to show diversity within your credit report.
Record of how frequently new credit accounts are opened or applied for.
Be strategic when shopping for a new loan or credit card to avoid opening multiple credit accounts during a short time period. You don’t want your credit report to show you’re constantly applying for credit.
Continue on your credit score journey
- Always make sure the information in your credit report is correct. Now through April 2021, you can get a free copy of your credit report online, once a week from each of the three major credit bureaus — Equifax, Experian and TransUnion. You can also visit annualcreditreport.com to view and download your credit report.
- Review complimentary Personal Finance articles that will guide you toward an improved financial future and great credit score.
- Email us with your credit score questions, tips and tricks!
Stay tuned for more credit score tips and advice from the Credit Score Mentor!