DFCU Blog

Here at Dannemora FCU, our members are our top priority, which means we want to help you achieve your financial goals and help you create the life you deserve!

But here is the kicker, unless you plan on paying for large purchases, such as a home or a vehicle, you need a decent credit score to do so. Your credit score can influence where you live, how much you pay for certain services and sometimes it affects if you receive your dream job offer.

So, what is a credit score and why does it matter?

A credit score is a numerical prediction of your credit behavior based on the data in your credit history reports.

Credit scores range between 300-850. The higher the score, the better! A strong credit score tells potential landlords, employers, and potential lenders that you have a history if financial responsibility.

What affects a credit score?

There are five key factors that come into play when determining one’s credit score. Each represents different components of your financial habits and accountability.

1. Payment History: This reflects the history of your payments, whether you’ve consistently paid your bills on time. On time payments will improve your credit score!
2. Credit Utilization: The amount of credit you’re using compared to your limits. For example, if you have a credit card with a limit of $10,000 and you have a balance of $5,000, your credit utilization is 50%. It is best to maintain a 10%-30% utilization ratio on all your credit cards.
3. Length of Credit History: A long and responsible credit history is what a good credit score is looking for. It shows a track record of being able to maintain your credit.
4. Types of Credit: Having a mix of credit types can benefit your score. Installment debt (auto loans and mortgages) and revolving credit (credit cards or other lines of credit like Home Equity).
5. New Credit Inquiries: When lenders check your credit report, it triggers a “hard” inquiry. Too many inquiries in a short period of time could temporarily decrease your score.

Where can one check their credit score?

Every consumer is entitled to a free credit report every 12 months from each of the three major credit reporting agencies: Experian, TransUnion, and Equifax.

Dannemora Federal Credit Union members can check their score in our Mobile App or Online Banking anytime without it affecting your score…EVER!

Thanks to SavvyMoney and CreditSense, all you have to do is simply login to your online banking and scroll to “Credit Score and Report”.