Know Your Credit Score

Credit scores are a “major player” in today’s financial services market place!  These scores are so important to us as consumers and a very valuable tool for financial institutions, insurance companies, and other credit grantors.

The simple fact is that our individual credit score is our personal financial score card.  Many, many factors conjoin to enlighten a prospective creditor as to the level of credit risk each consumer brings to a particular loan or credit deal. 

The “score” feeds into a typical risk/reward scenario and allows the analyst to properly approve, counteroffer, or deny each unique lending opportunity.  The approvals are then priced accordingly with the higher credit score typically receiving the preferred rate and lower scores being priced in a proper, tiered fashion.

The characteristics of a credit score are as follows:

1. Payment information on credit cards, installment loans, mortgage loans, etc.
2. Public records including bankruptcies, foreclosures, wage attachments, liens, judgments, etc.
3. Details on late or missed payments and collection items, detailing the severity of the delinquency, the amount owed, how frequently the account paid late, and the length of time since the most recent delinquency
4. How many accounts reflect “as agreed” (no late payments)

1. The amount owed on all accounts and on specific types of accounts
2. The number and type of accounts with balances
3. The amount of the total credit line that is drawn (being used) on credit cards and other revolving credit
4. How much of an installment loan is still owing compared to the original principal amount borrowed

1. The length of time since the credit accounts were established, considering the age of both the oldest loan and all credit accounts
2. How long since specific credit accounts were established
3. How long since specific credit accounts were utilized

1. How many new accounts exist and how long since the most recent new account was opened
2. The number of recent requests for credit initiated by the consumer.  This does not include creditor inquires for pre-approvals or requests by the consumer for a copy of their own file
3. The length of time since a creditor made file inquiries
4. If there is “good” recent credit history, following past payment challenges

1. The specific types of credit accounts on file and how many of each type exists
   
   

This is a brief synopsis of the factors that combine to create our individual credit scores.  For more information on credit scores and credit ratings in general, visit www.annualcreditreport.com. 

To request a personal credit report, which is available to all consumers at no cost one (1) time per year, please call 877-322-8228 or send your request to Annual Credit Bureau Request, P.O. Box 105281, Atlanta, GA 30348-5281. 
The proper form to use for your written request is available at https://www.annualcreditreport.com/cra/requestformfinal.pdf

Your savings federally insured up to $100,000 by the National Credit Union Administration, a U.S. Government Agency.

Equal Opportunity Lender

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University Credit Union
13241 S.W. 136th St.
Miami, FL 33186
786-425-5000