KNOW THE SCORE

WHAT IS A CREDIT SCORE?800+

Exceptional

799-740Dependable

739-670Good

669-580Below Average

579Riskyor less

At MSUFCU, we strive to provide you with a wide range of outstanding financial products and services aimed at helping you reach your financial dreams. An important part of attaining many of your financial goals, such as buying a new home, car, or even finding a new job, is a positive credit score.

Your credit score is a three-digit number that ranges from 300 to 850. Lenders typically use this score to determine the likelihood that you will be able to pay them back.

The most commonly used credit score is generated by three major credit bureaus (Experian, TransUnion, and Equifax), and is based on information in your credit report.

Free credit reports are available annually at www.annualcreditreport.com. To receive your credit score, a fee may apply.1

payment history amounts owed length ofcredit history

number of typesof credit new credit

30%IMPORTANT TO KNOW

•••••

What makes up your credit score?

10%

15%

10%

35%

One late payment can lower your score by as much as 100 points. You can challenge inaccurate information on your report. The total credit you have is less important than your total available credit. Debit cards will not repair or establish credit. You may get a free copy of your credit report each year.1

HOW IS YOUR CREDIT SCORE DETERMINED?

Factors That Hurt Your Score Ways to Improve Your Score

Past History

New Credit

Amount Owed

Length of Credit History

Types of Credit in Use

Pay on Time. Late payments are the most common piece of negative information on reports.

Pay Down Debts. Bring delinquent loans current.

Don’t Close Accounts. Pay down or pay off credit cards, but don’t close them. A closed account will still show up on your credit report.

Revolving Credit. Move revolving debt (line-of-credit accounts) to installment debt (closed-end loan accounts).

Avoid Multiple Cards. Don’t open multiple new lines of credit in a short period of time.

Late Payments. It takes about 24 months to restore damaged credit from just one late payment.

No Availability. Cards with balances at their maximum credit limits lower your score.

Closing Revolving Accounts. This reduces the history of your accounts and lowers available credit limits.

Too Many Revolving Accounts. Revolving credit (credit cards) reflects more negatively than installment loans (auto loan, mortgage).

Opening Multiple Cards. Multiple new accounts opened in a short period of time reflects negatively on your credit score.

HARD HITSSOFT HITS

Examples of hard hits:• Inquiries by lenders: This can occur

any time you apply for a credit account or loan.

• Inquiries by retail stores

35%

10%

30%15%

10%

Examples of soft hits:• Inquiries by you: You can purchase your credit score without penalty.• Inquiries by insurance companies

“Soft” hits to your credit report do not affect your score.

“Hard” hits to your credit report may affect your score.

HOW CREDIT INQUIRIES IMPACT YOUR SCORE

WHAT AFFECTS YOUR CREDIT SCORE

Request Your Credit Report: www.annualcreditreport.com

Credit Report Information: www.msufcu.org/creditreports

Financial Seminars: www.msufcu.org/seminars

BudgetSmart Software: www.msufcu.org/budgetsmart

We’re here to help! If you’re looking to rebuild your credit, try our Credit Rebuild Visa! This card is designed to help get your credit score back on track.

Financial Calculators: www.msufcu.org/calculators

GreenPath Financial Solutions: www.msufcu.org/greenpath

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Questions? Contact us!www.msufcu.org517-333-2424 • 800-678-4968

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