Your credit score may affect your ability to receive private/alternative loans. And good credit means you are more likely to get that private/alternative funding with a better interest rate. Later in life, a good credit score could save you hundreds of dollars a month on your house payment, or lower your car insurance rates.

The credit report contains four important areas of information:

• Personal: Name, address, Social Security number, date of birth, and employment information
• Credit history: Types of accounts, the date you opened the account, your credit limit or loan amount, the account balance, and payment history
• Public records: Bankruptcies, foreclosures, garnishments, legal suits, and judgments
• Inquiries: List of creditors that accessed your credit report in the last two years


What makes up your credit score?

A credit score is a number based on a snapshot of your credit report that helps a lender determine your ability to pay back debt (your score = your credit risk). Fair Isaac’s FICO ® scores are widely used credit scores.



35% payment history: Looks at items such as late payments and bankruptcies, which can hurt your credit score.

30% amounts owed: Considers your debt and your available credit lines. The more you owe compared to your credit limit, the lower your score will be.

15% length of credit history: Checks how long you had your credit accounts and how often you use them. A longer credit history will usually increase your FICO ® score.

10% new credit: Looks at new credit accounts you opened and new credit requests (such as credit cards). Multiple credit requests also represent greater credit risk.

10% types of credit used: Considers how many credit accounts and how many installment-type accounts you have. A diverse credit portfolio can strengthen your report.

What does your score mean?