A higher score is better and allows you to qualify easier for loans and lower interest rates. Scores usually range from 300 – 850 and there are different credit score models based on the type of credit.

How many scores do I have?

• There are 3 credit bureaus and your information is often different between bureaus. Lenders usually use the middle score as your qualifying score.

What affects my scores:

• Many items can impact credit scores.
  • How long you have had credit.
  • On-time payments versus any late payments.
  • The amount of available credit used (less is better)
  • Are you over the credit limits? (not good)
  • Late payments
    • Recent late payments hurt your score
    • Older late payments have less impact
  • Derogatory credit will hurt scores but they lessen over time

Recommended steps to increase my score?

• Always make sure you pay bills on time. Late payments hurt scores.
• Do not max out credit cards or get near the limits. Balances of 30% or less of the credit limit increase scores.
• Longer your credit history – the better
• Do not close old accounts. Better to keep the account open with $0 balance.
• Do not apply & open too many accounts. Just a few accounts, paid on time, with low balances is better than too many accounts.

How can I see my credit?

• You are allowed 1 free credit report each year from the main 3 credit bureaus.
• Go to AnnualCreditReport.com or call 877-322-8228.

How do I correct mistakes?

• First, contact the creditor and explain what is wrong and why. Try to have documentation to support the correction.
• If creditor will not correct, you can file a dispute with the credit bureau to correct.
• If applying for a home mortgage, talk to your loan officer before filing a dispute. For mortgage approval, some disputes must be resolved or removed. Best to speak with your loan officer before submitting a dispute since some errors are minor and may not affect your approval.

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