Credit Score
WHAT IS A CREDIT SCORE1?
In its simplest form, a credit score is like a report card on how well you can pay back a loan.
WHY IS A CREDIT SCORE IMPORTANT?
Credit scores are important because they affect your financial options when making large, and even small life choices. Not only does your credit score affect your ability to open loans and services, but it also affects what extra benefits you receive. Your credit score can impact your interest rates, determine how large your line of credit can be, give you more home buying options, and even lower your insurance premiums. Your credit score also affects your ability to:
- Rent or buy a home
- Get approved for a loan and get a low-interest rate
- Open utility accounts
- Start a phone plan with minimum down payments
- Find an employer
Luckily, increasing or maintaining your credit score only requires a little bit of research about where the score comes from. Your credit score is impacted by several factors.
CREDIT HISTORY
Credit history can make up to 15% of your credit score. This includes the age of your oldest account, youngest account, and average age of all your accounts. The longer your credit history, the higher your score. Because of this, it is important to get a head-start on your credit history as soon as possible.
PAYMENT HISTORY
Payment history has the largest overall impact on your credit score. Whenever lenders are deciding whether to give you a loan, they look to see if you make your payments and if you make them on time.
The amount of new credit accounts is a factor on your credit, and it also brings the average age of your credit accounts down.
Hard inquiries occur when you apply for a loan or line of credit; and the lender requests to look at your official credit report. Hard inquiries only affect your credit for a few months, but they stay on your credit report for up to two years. This is why it is important to keep hard inquiries to a minimum when possible.
It is important to monitor your credit score frequently to know where you stand and where you have room to improve. That’s why we have made it easier than ever for our Members to check their credit score for FREE! Log in to Online Banking to see your credit score today!
Now you can see your credit score daily and get tips on how to maintain or improve it! Log in to online banking or the mobile app and look for Credit Score1 to get started!
With Credit Score you will get:
- Free credit score for Members
- Free credit monitoring service
- Personalized credit Report Card
Get unlimited access to Credit Score, anytime and anywhere, by logging in to online banking or using the KTVAECU mobile app! Need assistance with logging into online banking or downloading the app? Check out our helpful tutorials in the links below.
*Credit Score available for primary account holder only. Some restrictions may apply. Ask for details. Message and data rates may apply from your wireless carrier. Credit Score does not apply to business accounts.