Your credit score: What helps? What hurts?

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 free credit score option is available.

There are also safe ways to pay to see your credit score. With Equifax or myFico, you can choose from a number of plan options that show you your credit score.

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Doing good

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 moves the needle on your credit score?

You know it’s important to earn and keep a good credit score, but do you know how to do it? Learn more about what will improve your credit score and what can hurt your credit score.

Credit mix

The different types of credit accounts you have like mortgages, loans, credit cards, etc.

Credit utilization rate

Your total debt divided by total credit you have available. (Also known as your debt-to-credit ratio.)

Quick reads

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Highlights:

  • A credit mix refers to the different types of credit accounts you have
  • The impact of a credit mix on your credit scores varies, depending on the credit scoring model used
  • Lenders and creditors generally want to know how you have managed different types of accounts over time

Whether you’ve already established a credit history or you’re wondering how to get started building one, you may not know what a “credit mix” means – or how having different types of credit may affect your credit scores.

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Highlights:

  • Late payments can remain on your Equifax credit report for up to seven years from the date of the missed payment
  • Making the minimum payment on credit cards may mean you pay more in interest
  • It's important to review your credit card and bank statements each month

Your credit history can affect your everyday life in ways you may not even realize. Besides helping determine what loans or credit you’re offered and at what interest rates, it may play a role in job offers or home rentals, among other things.

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

For lenders, your credit score indicates how good you are at repaying your debts and may be used to determine 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 scores 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.

There is no minimum credit score required for a loan at LGFCU. Credit scores may determine the documentation needed during the loan application process, but are not a factor in loan pricing.

According to the FICO® scoring system, a credit score of 819 is considered "excellent."

Credit unions are a great option to consider if you're trying to improve your credit score. Your Credit Union provides support for credit score management, including complimentary in-branch financial counseling services and affordable financial products. Both of these can help you get on track with your finances, which in turn, affects your credit score.

While different financial institutions use varied credit score models, LGFCU uses the FICO® Score 8 model, provided by Equifax.

A credit report contains information about credit accounts like payment histories, balances, account opening and activity dates and credit limits, as well as records of debt collections and bankruptcies, but doesn’t list your credit score.

A credit score identifies the type of credit risk you are as a borrower. Information found in your credit reports is used to calculate your credit score.

COVID-19 and credit scores

Because of the pandemic we know some members are making difficult budgeting choices, possibly causing credit scores to drop.

If you’ve been affected, here’s what you can do:

  • Make sure the information in your credit report is correct. Through April 2022, get a free copy of your credit report online, once a week from Equifax, Experian and TransUnion. View and download your credit reports from the three credit reporting agencies.
  • Find out how your Credit Union can support you, and what other resources may help you navigate financial challenges.

Continue on your credit score journey

  • If you have a loan or a credit card with us, view your credit score in Member Connect.
  • Check out our Personal Finance information for even more guidance 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!