Member Education

Credit Scores

A credit score is a number that helps lenders and others predict how likely you are to make your credit payments on time. Each score is based on information in your credit report.

As a rule, credit scores analyze the credit related information on your credit report. How they do this varies. Since FICO scores are frequently used, here is how these scores assess what is on your credit report.

1. Your payment history - about 35%
   A solid record of on time payments helps your score.
2. How much you owe - about 30%
   The more you owe compared to your credit limit, the lower your score will be.
3. Length of credit history - about 15%
   A longer credit history will increase your score.
4. New credit - about 10%
   If you have recently applied for or opened new credit accounts, your credit score will weigh this fact against the rest of your credit history.
5. Other factors - about 10%
   

What is NOT in your scores

By law, credit scores may not consider your race, color, religion, national origin, sex and marital status, and whether you receive public assistance or exercise any consumer right under the federal Equal Credit Opportunity Act or the Fair Credit Report Act.

What is a Good Score

When lenders talk about your score, they usually mean the FICO score developed by Fair Isaac Corporations. FICO scores range from 300-850, and most people score in the 600x and 700s. Higher FICO scores are better.

If you would like more detailed information about this topic, read this pdf "Credit Scores are Vital to Your Financial Health", by the Fair Isaac Corporation.