MoneyWisdom Blog

Obsessed With Your Credit Score? Here’s Why You Shouldn’t Be

Posted by Diana Burrell on Apr 13, 2018 8:36:05 AM

Like many newlyweds, Tarah and Ryan of Littleton, MA, dreamed about becoming homeowners someday. Their first step? Getting a handle on their credit scores. A preliminary check in 2014 surprised Tarah; her score was lower than her husband’s.

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Topics: Credit Score

The 2 factors that make up 65% of your FICO score

Posted by Diana Burrell on Apr 9, 2018 1:17:28 PM

 

Last week in a lending training session here at Hanscom FCU, we reviewed the five elements that make up a FICO score, a number between 350 and 850 that indicates to a lender how creditworthy a consumer is and how likely they are to pay off their debts. The higher the number, the more attractive the consumer is from a lending standpoint. I also learned that each element comprising the FICO score is weighted:

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Topics: Debt, Credit Score

6 Steps to Rebuilding Credit

Posted by Hanscom Federal Credit Union on Aug 11, 2017 7:45:00 AM

1. Know Your Starting Point

Obtain a copy of your credit report from all three credit bureaus so that you have a clear understanding of what it says about you and your credit history. Hanscom FCU members can request a free credit report, and one of our credit professionals will explain how to read the report.

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Topics: Money Management, Debt, Credit Score

Can No-Limit Credit Cards Limit Your Credit Score?

Posted by Hanscom Federal Credit Union on Apr 21, 2017 2:40:00 PM

If you are familiar with the way credit scoring works, you probably know that avoiding being “maxed out” on your credit cards and other revolving accounts generally impacts your score in a positive way. You might also be aware that the FICO score — the most popular model in a credit score review — dedicates 30% of its score calculation to how much of your available credit you are using. The lower percentage of available credit you are using, the better your FICO score will be. It would seem then that logic dictates that a no-limit credit card would be the best possible solution for this part of your FICO score calculation, since you theoretically have an infinite amount of available credit. But this is one place where logic fails.

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Topics: Credit Score, Credit Card

Get a Free Credit Score Review

Posted by MoneyWisdom Newsletter on Apr 11, 2017 3:37:54 PM

To begin conquering debt, you’ll need to understand what you owe and what you are paying to maintain your debt. The amount you spend on finance charges might surprise you.

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Topics: Credit Score, Credit Report

Checking Your Credit: Be Sure You Have the Right Score

Posted by Hanscom Federal Credit Union on Jan 12, 2017 3:25:57 PM

Have you ever requested your credit score from a credit bureau? You need to read this.

Earlier this month, the Consumer Financial Protection Bureau ordered Equifax and TransUnion to pay millions in fines and penalties. Both national credit bureaus misstated the usefulness and value of the credit scores they sold to consumers. The credit bureaus gave customers a score meant for educational purposes, while implying it was the score actually reviewed by lenders.

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Topics: Credit Score

How a Credit Score Review Saves You Money (and headaches)

Posted by Bill Burpeau on Jan 4, 2017 3:03:00 PM

 

The term “Credit Score Review” is thrown around a lot these days. Companies from Discover Card to CreditKarma will tell you your credit score. They will even tell you about the 5 factors that make up your score:

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Topics: Credit Score

How does my credit score affect my mortgage application?

Posted by Bill Burpeau on Oct 6, 2016 1:00:00 PM

House_by_a_pond-1.jpg

A credit score is one of the pieces of information that we'll use to evaluate your application. Financial institutions have been using credit scores to evaluate credit card and auto applications for many years, but only recently have mortgage lenders begun to use credit scoring to assist with their loan decisions.

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Topics: Credit Score, mortgage

6 Common Credit Report Misunderstandings

Posted by Hanscom Federal Credit Union on May 12, 2016 2:39:09 PM

6 Common Credit Report Misunderstandings

If you’re not used to reading them, credit reports can make about as much sense as a restaurant menu printed in a foreign language. At least in a restaurant, you can point to what someone else is having. But if you don’t know how to read your credit file, you could make mistakes that could lead to your financial life being harder than it needs to be.

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Topics: Credit Score

Four steps to help rebuild credit using your credit card.

Posted by Hanscom Federal Credit Union on May 11, 2016 5:00:00 AM

All too often, credit cards are to blame for a bad credit score. Obviously it’s not the card’s fault, but the user who mishandles it. Missed or late payments, years of making only minimum payments and huge bills can cause your credit score to go down considerably.

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Topics: Credit Score, Credit Card

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